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Gold Price Forecast – Gold Markets Threaten Break Out

By:
Christopher Lewis
Updated: Dec 27, 2021, 17:29 UTC

Gold markets have rallied again on Monday to threaten a serious breakout near the $1820 level.

Gold Price Forecast – Gold Markets Threaten Break Out

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Gold markets have initially pulled back during the trading session on Monday but then shot straight up in the air to go towards the $1814 level. There is a significant amount of resistance at the $1820 level, and I think at this point in time are going to try to take that out. Whether or not we can do that in the next couple of days would be a different question, but the next couple of days I think will feature the market trying to do just that. Keep in mind it is going to be somewhat thin liquidity, so whether or not we can make that happen is a completely different question but it certainly seems like it is on the minds of traders.

Gold Price Predictions Video 28.12.21

To the downside, the $1775 level is massive support based upon previous action and therefore I think any move towards that area will probably find buyers. If we were to break down below there then the gold market will probably break apart and go much lower, maybe down to the $1725 level. That of course would be a very negative turn of events and would probably see a strengthening US dollar at the same time. Whether or not we can break up between now and New Year’s Day is an open question, but that is the direction I am leaning in. If we do break above the 1820$ level, then the market is likely to go looking towards $1850, possibly even $1875 level over the longer term. Regardless, I think you should be cautious about your position sizing until the trade works out in your favor and clears the potential resistance barrier.

For a look at all of today’s economic events, check out our economic calendar.

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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