Gold Forecast December 13, 2012, Technical Analysis

The gold markets initially fell during the Wednesday session in order to find support again just above the $79.00 level. However, later on in the session we have the minutes from the Federal Reserve meeting released, and this of course suggested that a continuation of asset purchases would be the order of the day. Because of this, gold got a bit of a boost as the dollar lost some of its value.

Resulting candle for the session was a hammer, and it does look like we’re trying to gain again. However, we still see the $1720 level as a resistance point that will more than likely cause a few headaches. However, we feel this is minor, and we should continue to go higher rather than lower. Because of this, we are still bullish of gold.

Looking forward, we think that a break above the $1720 level will lead to a move up to $1750 in the short-term. As for selling, we have absolutely no reason to do so at this point.