Gold Forecast December 29, 2011, Technical Analysis

Gold markets fell hard on Wednesday as the US dollar caught a bid against most currencies. With the end of year profit taking in full swing, it makes sense that the gold markets would fall. The overall trend is still very bullish, and we suspect that next year will have more bullishness coming into the market. The demand for gold is falling overall, but we think that the fall is simply just a chance to buy gold at lower prices. We suspect that there is a “golden opportunity” in this market as the pullback continues. However, the $1,500 level below should be massive support going forward, and we are simply waiting for some kind of supportive candle on the daily chart to start buying again.