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Gold Price Forecast – Prices Close to A Decisive Break

By:
AG Thorson
Updated: Dec 17, 2019, 18:45 UTC

Gold continues to ride a fragile line between confirming a cycle breaking out or a breakdown. The trendlines are narrowing, and the standstill should be resolved later this week. 

Gold Weekly Price Forecast - Gold Markets Run Into Resistance

With the first 2-weeks of December behind us, the near-term trend in metals and miners remains in limbo as markets continue to digest the trade announcement and what it means going forward.

COT REPORT: Commercials shaved off 20,504 shorts last week, bringing their total net-short standing down to -302,283 contracts. That is a meager 12% reduction from the all-time high of -345,145 shorts set back in September. I’d feel much more comfortable expecting a low if commercials shorts were closer to 200K instead of 300K.

GOLD FUTURES KEY LEVELS

  • A decisive close above $1492 would confirm a cycle breakout.
  • Finishing below $1465 would set a course for $1410 – $1430. 

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The October consolidation lasted 24-trading days before finally breaking lower. The consolidation that started November 12th is on its 23rd day. A pattern repeat would support a breakdown between Wednesday and Friday.

Longer-term, I believe gold is starting a new bull market, and any dip from here should be considered a buying opportunity.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/

About the Author

AG Thorsoncontributor

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle that will begin to unravel in 2020.

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