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Gold Price Forecast – Gold Markets Struggle Again

By:
Christopher Lewis
Updated: Dec 17, 2019, 17:04 UTC

Gold markets initially tried to rally during the trading session on Tuesday but then gave back the gains to form a less than impressive candlestick. By showing signs of weakness, installing at the 50 day EMA it shows that gold isn’t quite ready to take off yet.

Gold

Gold markets initially tried to rally during the trading session on Tuesday but then gave back quite a bit of the gains in order to form a slightly negative candlestick sitting just at the 50 day EMA. Beyond that though, there is a downtrend line above that will continue to come into play, and it’s likely that the $1500 level will also cause major issues. Ultimately, the market then should probably go down to the $1450 level underneath, which has been massive support in the past. Ultimately, this is a market that needs to make some type of decision and this time a year can be rather difficult as liquidity becomes an issue.

Gold Price Predictions Video 18.12.19

What I find interesting is that the gold markets haven’t sold off in a major “risk on” type of situation after the US/China trade deal. Having said that though, it does look as if it is struggling to go higher and therefore, I do like the idea of fading short-term rallies as we continue to see opportunity to sell gold. If we break above the $1500 level though, then it’s likely that the market would take off to the upside for a bigger move, perhaps in reaction to some type of negative economic event. At this point, the market is more likely to simply go back and forth, with a slightly negative tilt as the trend has decidedly been down from late in summertime. However, one gets the sense that we are only one major headline away from the shooting in one direction or the other.

Please let us know what you think in the comments below

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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