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Gold Weekly Price Forecast – Gold markets test major resistance

By:
Christopher Lewis
Updated: Dec 7, 2018, 18:42 UTC

Gold markets rallied significantly during the week, breaking towards the $1250 level , an area that has been relatively resistive. As we close out the week, it looks as if we are on the precipice of a move.

Gold weekly chart, December 10, 2018

If we break above the top of the weekly candle stick, then I think the market probably goes to the $1300 level. Otherwise, I think that the market probably pulls back a bit, but it certainly looks as if gold is trying to make a statement, as the $1200 level has been massive support, while the $1400 level above has been massive resistance. I think at this point, it looks more likely that we continue the longer-term consolidation. The longer-term consolidation doesn’t necessarily mean that it’s going to be easy to get up there, but I think that the greenback rolling over would be a boon to gold traders.

Gold Technical Analysis Video 10.12.18

The alternate scenario is that we break back down below the $1200 level, then we should go down to the $1000 level, an area that of course is crucial from a psychological and structural standpoint on longer-term charts. In general, I believe that the markets will be making a lot of decisions over the next couple of weeks, based upon what’s going on with the greenback and global growth. There are a lot of crossing the headlines that can move expectations for the US economy, and the fact that the Federal Reserve has suddenly become a bit dovish suggests that perhaps we will continue to see Gold rally as a hedge. I think there’s a lot of confusion right now about the Federal Reserve but it certainly seems as if there is a coordinated effort to talk down the dollar, and perhaps interest rate expectations.

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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