Gold Price Forecast – Gold Markets Continue to Show Signs of Support

Gold markets rallied a bit during the trading session on Tuesday to break above the $1850 level. It is thought that gold is being somewhat supportive due to the fact that the Federal Reserve comes out with an announcement on Wednesday, if people are expecting to see some type of tweaking of monetary policy, perhaps putting a little bit of negative pressure on the US dollar. Furthermore, we also have talk going back and forth when it comes to stimulus hopes in the United States, so with that in mind I would anticipate that gold eventually gets a lift from some type of deal.

Gold Price Predictions Video 16.12.20

Looking at the size of the candlestick for the trading session on Tuesday, it does show that there is a certain amount of conviction, but the 50 day EMA above will of course cause a certain amount of resistance as well. If we can break above there, then the market is likely to go looking towards the $1900 level, which is a large, round, psychologically significant figure. I believe that we continue to see dips as being bought going forward, but not necessarily quite ready to take off to the upside. To the downside, if we were to break down below the hammer from a couple of weeks ago then we could see more continued downward pressure. At this point, it is very likely that we are trying to trade based upon stimulus more than anything else. If we get enough, that should send this market higher but if the US dollar starts to strengthen, that will continue to hurt this market.

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