Gold traded lower yesterday after it hit resistance slightly below the 1110 (R1) resistance barrier. However, the decline was stopped faintly above the 1090 (S1) key level and then the metal rebounded. As long as gold is trading above the 1090 (S1), I would consider the short-term picture to be cautiously positive. A clear break above 1110 (R1) is needed though to confirm a forthcoming higher high on the 4-hour chart, which could set the stage for extensions towards the next resistance zone of 1122 (R2). Our short-term oscillators support somewhat that the current rebound may continue for a while, at least for another test near 1110 (R1). The RSI rebounded from near its 50 line, while the MACD, although below its trigger line, shows signs that it could start bottoming. As for the broader trend, the move above 1090 (S1) signaled the upside exit of the sideways range the precious metal had been trading between that zone and the support area of 1046. Therefore. I believe that medium-term picture has turned somewhat positive as well.
• Support: 1090 (S1), 1080 (S2), 1070 (S3)
• Resistance: 1110 (R1), 1122 (R2), 1132 (R3)
Gold Price Forecast for 2016
FFC is forecasting the price of gold to be $1084 per troy ounce for December 2015, down from November’s average of $1087.05. Gold is predicted to slowly trend up over the next 6 months with the average price being about $1094 per oz t.
In the longer run, the price of gold will continue to trend down along with other commodities.
The forecast below breaks down predicted gold prices by month.