Gold forecast for the week of December 25, 2017, Technical Analysis
Gold markets rallied during the week, breaking the top of the hammer from the previous week, and slammed into the $1275 handle. The candle close towards the top of the range, and that of course is a very bullish sign. I think that the market continues to be noisy, but I think that breaking above the $1275 level sends this market to the $1300 level. That’s an area that should be resistive, but I think we will break above there given enough time. It looks as if precious metals are starting to show life again, and the most recent pullback has confirmed what I thought could be an uptrend line. Once we break above the $1300 level, I think we go to the $1325 level, and then the $1350 level after that.
Your capital is at risk
If we were to break down below the uptrend line, the market could breakdown, perhaps reaching towards the $1200 level after that. I believe that the market will continue to be noisy and perhaps driven by the overall attitude of the US dollar, which looks likely to be soft going forward against other currencies such as the Euro and the Pound. Ultimately, this market tends to react to those to currency pairs, and I think that the greenback is going to continue to suffer a bit. If we break out to the upside, I suspect that you can add to your position once we clear the $1300 level. Markets continue to trade on anti-US dollar sentiment, as well as geopolitical concerns as inflation looks to be a little bit high in some places.