Gold markets went back and forth during the course of the week, as we continue to try to build up enough momentum to break out to the upside. If we can clear the $1300 level, I think that gold will continue to go much higher. The Federal Reserve stepping away from its overly hawkish stance suggests that perhaps Gold could get a bit of a boost from a shrinking US dollar. However, I believe that the market will continue to be very choppy, so wait for short-term pullbacks as you can take advantage of to pick up a bit of value.
Gold Price Predictions Video
When you look at the channel that I have drawn on the chart, we have broken above the top of it, and now are looking at the top of it as support. This is why I think that technical traders will also look for opportunities to go long. Once we break the $1300 level, then I think the market will go looking towards the $1350 level, and then the $1400 level. Ultimately, I think that this market will move in lockstep with the US dollar falling. It does look as if it is losing strength against many currencies around the world, and if that’s going to be the case I think gold will be a beneficiary as well. I believe that even if we break back into the previous channel, the $1250 level should be massive support, and could be a nice buying opportunity as well.
This article was originally posted on FX Empire
More From FXEMPIRE:
- E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – January 11, 2019 Forecast
- AUD/USD Weekly Price Forecast – Australian dollar rallies
- Silver Price Forecast – Silver markets rally but fail later on Friday
- Natural Gas Price Forecast – natural gas continues to consolidate
- S&P 500 Weekly Price Forecast – stock markets press previous important levels
- USD/JPY Weekly Price Forecast – US dollar continues to struggle