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Gold Price Forecast – Gold markets slightly negative for Wednesday

By:
Christopher Lewis
Updated: Nov 28, 2018, 17:17 UTC

Gold markets went slightly negative during the day on Wednesday as we continue to see markets dance around the 50 day EMA. There is a lot out there that can disrupt markets overall right now, so it’s not a huge surprise to see all of this volatility.

Gold daily chart, November 29, 2018

Gold markets continue to be very noisy, as we had a slightly negative session on Wednesday. The uptrend line underneath should continue to offer support, and I think that the psychologically important $1200 level will as well. That being said, if we do break down below that level, then the market could unwind rather drastically. That could send Gold looking towards the $1000 level over the longer-term. In the meantime, I believe that short-term rallies are to be faded on signs of exhaustion, perhaps using short-term charts as your guide. I believe that the $1250 level above is a massive barrier, but if we can get above it, then the Gold markets will continue the overall consolidation that we had seen in the past, between the $1200 level and the $1400 level.

Gold Price Video 29.11.18

Either way, I think that once we decide which way we are going to go, we are working in two hundred dollar intervals, and I do believe that the $1000 level could be a major bottom in this market, as it was a major barrier previously. Obviously, that would be a lot in the way of psychology coming into the market as well, so keep an eye on that. The other thing you need to pay attention to is the US dollar, if it rallies, gold markets will probably break down. If it rolls over eventually, then gold could get a rally, perhaps in reaction to a Federal Reserve sounding a bit softer than once originally thought.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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