Gold Price Forecast – Gold markets take off to the upside

Gold markets rallied significantly during the trading session on Thursday, as precious metals in general got a bit of a boost. Pay attention to the US dollar, because we get significant weakness in the greenback, that should push the Gold markets higher. If we break above that level, the market probably goes to the $1220 level, perhaps even the $1225 level.

Alternately, if we break down from here I think the $1205 level would offer significant support, and most certainly the $1200 level will be. Pay attention to the EUR/USD pair, it gives you a general idea of what is happening with the greenback, which of course has a major influence on gold. I think this is been more of a risk safety type trade, which we have seen in the past more than once. Overall though, I think that the market is a bit overextended, so it’s likely that a pullback would be necessary. However, if we can break out above the $1215 level, it could signal that fresh monies coming into the marketplace, and it could make a relatively impulsive move just waiting to happen. I like Gold longer-term, but quite frankly the US dollar has been so strong for some time, so I don’t think it’s going to be the easiest move to the upside, so certainly you need to use a bit of caution as you could be entering the trade a bit late here.

Price of Gold Video 12.10.18

This article was originally posted on FX Empire

More From FXEMPIRE:

• Bitcoin – Bulls Try to Steady the Ship As Volatility Returns

• GBP/USD Daily Price Forecast – British Pound Maintains For Fourth Consecutive Session against US Greenback

• China’s Trade Surplus Defies Gravity Again to Shift Focus to Trump and the USD

• Stock Market Sell-off: Trump Blames Fed, but Seasonality Also Factor

• DAX Index Daily Price Forecast – DAX To Open Positive on Bullish Cues From International Markets

• GBP/JPY Price Forecast – British pound continues to grind sideways against yen