Gold Price Forecast – Gold markets rally during holiday

Gold markets rallied a bit during the trading session on Monday, as liquidity may have been a little bit of an issue, but at the end of the day it looks as if the US dollar is struggling a bit. We are at the top of an up trending channel, so that’s something to pay attention to as well.
Christopher Lewis
Gold daily chart, December 26, 2018

Gold markets rallied a bit during the trading session again on Monday, as we continue to see a lot of bullish pressure in general. I think at this point, we will eventually break to the upside and perhaps extend all the way to the $1400 level above. It looks as if we are trying to break out on several levels, and pullbacks at this point should continue to offer buying opportunities. I certainly don’t want to short gold, because it has shown so much in the way of bullish pressure.

Gold Prices Video 26.12.18

The 50 day EMA is starting to turn higher, and it now looks as if this is going to become a “buy on the dips” scenario, with the uncertainty around the world certainly helping. Beyond that, the Federal Reserve has sounded a bit more dovish as of late, so that should continue to put upward pressure on gold as well. I think at this point, we will probably continue to trade back and forth over the longer-term, with the $1200 level underneath being supportive, and the $1400 level being resistance.

It’s not until we break down below the $1200 level that we could be in a situation to start shorting again, which would open the door to the $1000 handle. In general, I do like Gold and I think that we are going to continue to see buyers jumping in but it’s going to be more of a grind that anything else.

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