Gold Price Forecast December 26, 2017, Technical Analysis

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Gold markets went sideways initially during the day on Friday, but then rallied significantly to crash into the $1275 level, an area that causes a bit of resistance. However, Gold markets do look supported by a lot of buying pressure. · FX Empire

Christopher Lewis

Updated Fri, Dec 22, 2017, 10:44 PM

Gold markets initially drifted higher during the day on Friday, but then picked up a lot of volume and speed later in the day as Bitcoin crash. Perhaps it was people using Bitcoin as a store of value going into the gold market that lifted the price of precious metals, but in general I think that paying attention to the US dollar overall is going to tell you what to do with gold. If you the US dollar falls, that should continue to help the gold markets as well. I think if we break above the highs of the day, the markets probably go looking towards the $1285 level next, and then eventually the $1300 level which is significant resistance.

In the meantime, I like pullbacks as an opportunity to pick up value, especially near the $1270 level. The markets continue to be very choppy and noisy, but at the end of the day I think if you add slowly to a winning position, then you can build a large position that’s going to profit quite nicely. Alternately, if we break down below the $1260 level, then I think that shows significant bearish pressure and concern in the market. The weekly chart looks bullish though, so therefore I think overall this is a market that should continue to be strong and could be waking up for a longer-term move finally. Noisy trading conditions will continue, but I think that the volume could make things difficult for a couple of sessions going forward.