Gold Price forecast for the week of December 11, 2017, Technical Analysis

Christopher Lewis
Updated
Gold markets continued to look soft over the last week, breaking through a significant trend line.

Gold markets are likely to continue to go to the downside, if we break down below the bottom of the weekly candle that just printed. The $1250 level is the middle of the overall consolidation of the year, but we have broken through a significant trend line, and of course is pass we Close towards the bottom of the range. If we break down below the bottom of the candle, it’s very likely that we will see a continuation of the bearish pressure, and perhaps reach down towards the $1225 level, and more importantly, the $1200 level. A breakdown below there would be very negative for gold in general.

Pay attention to the US dollar, if that continues to strengthen overall, we will see gold suffer. The US dollar has performed rather miserably during most of the year, so a rebound in the value the greenback makes sense, so gold could be soft for several weeks, if not months from here. Alternately, if we were to break above the $1275 level, then I think the market probably goes looking towards the $1300 level next, which sets up for a longer-term “buy-and-hold” move if we can continue higher. I don’t think that’s going to happen though, so more than likely will we be ready to see is a little bit of softness in this market, followed by support at a lower level. I think there are a lot of concerns when it comes to interest rates currently, mainly in other countries around the world beyond the United States. This should continue to put a bit of a bid in the gold markets, not to mention the geopolitical concerns of places such as North Korea.

Gold Technical Analysis Video 11.12.17

This article was originally posted on FX Empire

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