Gold Price Forecast – Gold markets quiet to start the week

Gold markets did very little on Monday as we continue to dance around the $1225 level. It’s essentially the middle of the overall consolidation area between the $1200 level underneath, as well as the $1250 level above. As we dance around the $1225 level, we are also dancing around the 50 day EMA, which of course is very technically important. The last couple of days have been rather quiet, and at this point I think the market is trying to figure out where to go next. A lot of this hesitation is probably in confusion as to what to do about the greenback itself.

Gold Analysis Video 27.11.18

I would point out that there is an uptrend line underneath that slices through the $1200 level, which also shows signs of support. If we were to break down below this uptrend line, and the $1200 level, it would be very negative for gold. Alternately, if we did break above the $1250 level, then the market would probably return to the overall consolidation area that we had been in for longer-term trades, between the $1200 level in the $1400 level. If we do break above $1250, then one would have to assume that we will try to go back towards the top of that consolidation zone, and it would make it a very bullish move.

Pay attention to the US dollar though, as it is very influential as to where the Gold markets go at times. If we do break down below the $1200 level, then I think we could go to the $1000 level. That’s an area that will be massive in its influence and importance, and I think a lot of value hunters would come in if we did go down there.