Gold Price Forecast – Gold markets steady on Friday

Gold markets went back and forth during the trading session on Friday, as market participants were probably thinking more about the weekend than putting fresh money to work. I believe that the uptrend line underneath continues offer support, just as the $1200 level will. If we were able to break below those areas, then we could go much lower. In fact, when you look at the weekly chart there is a bearish flag that is forming, so a break down below there could open the door to the $1000 level, an area that has been extraordinarily important in the past.

Gold Prices Video 26.11.18

With all of that in mind, if we break above the $1250 level, then I think gold has the ability to go to the $1400 level, which has been the top of the consolidation for some time. In the meantime, I think that we are going to go back and forth and show a lot of volatility. I think that the longer-term investor is probably better off looking at this market as one that you can trade from a physical standpoint, but levered positions are going to be very difficult to hang onto until we get clarity. I believe that the $50 range that we find ourselves in continues to be the boundaries that you should pay attention to. I think that the market is lining up for a significant move, but I don’t think you can anticipate which direction ahead of time, which of course will be a prudent thing to do in the volatile situation we find ourselves in. Keep in mind that the US dollar continues to strengthen, so that does put downward pressure here.