Gold Price Forecast – Gold markets run into resistanceGold markets ran into resistance during the day on Tuesday as we await the crucial Federal Reserve meeting. If there are is quite a bit of speculation out there as to what the Fed is going to do next, beyond the known interest rate hike coming. If the statement afterwards is a bit dovish though, that could get the gold market moving.
Gold markets are awaiting the statement after the interest rate announcement during the day on Wednesday. If the Federal Reserve sounds dovish, it’s very likely that we will see this market rally above the $1255 resistance barrier, and perhaps grind much higher. That being the case, the next 24 hours or so is going to be very crucial. I believe at this point, the 50 day EMA underneath is offering significant support, but obviously this could change depending on the statement. If the Federal Reserve sounds overly hawkish, which I do not think will be the case, it’s very likely that we could break down through that level.
Gold Outlook Video 19.12.18
If we do break above the $1255 level on a daily close, then I think it opens the door to the $1400 level. That is the top of the overall consolidation that the market had been in previously, so it would make sense that we would continue to go towards that area over the longer-term. Ultimately, if we break down below the 50 day EMA, then it opens the door to the $1200 level underneath, which breaking through that would open the door to the $1000 level. Overall, this is all going to come down to what the Federal Reserve says on Wednesday, as to where we go next into the foreseeable future. Keep in mind that liquidity could be a bit of an issue after the Wednesday session, as traders will start to focus on the holidays.
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