Gold markets rallied a bit during the trading session on Monday, breaking above the $1260 level. By doing so, the market looks likely to go much higher, perhaps aiming towards the $1275 level next. The $1250 level underneath should offer massively supportive, so pay attention to the US dollar, as it tends to move to the opposite direction. If the US dollar continues to fall, gold should continue to rally. Right now, looks like we will probably do this.
If we were to break down below the $1250 level, the market would probably drop rather rapidly, as it was established support of the last several sessions. Gold markets will react to geopolitical concerns, so if we get some type of negative headline crossing the wires, we could see gold rally. In general, looks as if the buyers are trying to take over, so I think that the $1275 level above is the initial target, but once we break above there we could go towards the $1300 handle. When I look at the weekly chart, we have broken above the top of the hammer from the previous week, so that of course is a very bullish sign as well. I have no interest in shorting, least not until we break below the $1250 handle. Gold markets can be rather erratic, so be careful when adding to your position, and of course buying into the market. I believe that adding slowly is probably the best thing you can do, because we will get very ill liquid markets over the next several weeks.
Gold Analysis Video 19.12.17
This article was originally posted on FX Empire