Gold Weekly Price Forecast – Gold markets break out above channel

Gold markets rally during the week, breaking through major resistance in the form of the top of an uptrend channel. Because of this, it looks as if we are ready to go higher and I think that we will continue to climb towards the top of the longer-term consolidation area.
Christopher Lewis
Gold weekly chart, December 31, 2018

Gold markets broke out above the top of a weekly uptrend channel, which of course is a very bullish sign as it looks like we are ready to continue the longer-term consolidation. The Federal Reserve has blinked a bit, and that of course could help the gold market as there is a lot of volatility out there when it comes to the stock markets and commodity markets. Ultimately, I think that short-term dips should be buying opportunities and that I think more than likely what we are going to see is a return to the $1400 level longer-term.

Gold Price Video 31.12.18

This doesn’t mean that there will be a straight shot higher, quite frankly I think it’s going to be quite choppy and difficult. Given enough time though, I think that most pullbacks are going to be buying opportunities and therefore it’s likely that you can build a longer-term position at this point. Be careful about over leveraging your situation, but I do like the idea of gradually building up a huge position. If we were to break down below the $1250 level, we could run into a bit more trouble, but at this point I think that we most certainly are starting to see buyers jump in and push. Ultimately, I suspect that every $50 or so we are going to see major resistance. Ultimately, this is a marketplace that should continue to benefit from a lot of uncertainty, both at the Federal Reserve and global markets.

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