15.12.202015:08 Forex Analysis & Reviews: GOLD price outlook for 15 December

GOLD PRICE OUTLOOK POINTS:

• Gold prices have opened the week at a key support level around the 61.8% retracement of the June-August major move.
• Short and long-term strategies may favor Gold strength, while intermediate-term strategies may continue to look for bearish swing scenarios.

Gold regained positive traction on Tuesday and reversed the overnight slide to near two-week lows. The $1,848-50 resistance might cap any further gains ahead of the FOMC monetary policy meeting.

From an intermediate-term point or for swing traders, the short side of Gold may be more attractive given the barrier of significant resistance at that key zone of prior support. Also of interest, last week's price action, following a really strong week formed as a doji. This indecision after a really strong week highlights the fact that the bulls driving from support may not be as bullish any longer; and there may be the potential for an evening star formation here should sellers continue to push this week. The evening star is often followed for bearish reversals, and given that that doji showed up at a key spot on the chart, the case could be strengthened for bearish scenarios from an intermediate-term timeframe.

Meanwhile, note that the exchange rate could face the resistance area formed by $1,860 critical round figure mark barrier. If the given resistance holds, the price for gold could consolidate in a range of $1,860 to $1,830 before a clear direction of breakout is seen. The market sentiment remains mixed leading to the rather flat price action for the moment.

However, the $1,830 level will be critical. If gold prices lose this handle, then we could expect further declines to the $1,800 level once again. A breach below this level will lead gold prices further south to test the $1,770 support zone.