Gold Forecast December 20, 2011, Technical Analysis

Gold markets rose slightly on Monday as the value investor stepped into the markets after massive losses over the previous week. The $1,550 level has acted as support, and is the center of the entirety of the support zone we have marked from $1,500 to $1,600. The area should be very supportive, and with this long-term uptrend still intact, the market is most likely to bounce from this point. Because of this, we want to buy for a bounce. The real move probably won’t happen until 2012, so we will be quick to move stop losses up to break even if we are profitable. A break below the $1,500 level would be very bearish.