Gold Forecast December 31, 2012, Technical Analysis

The gold markets did very little during the session on Friday, losing just a slight bit. However, you can see that over the course of the last several sessions we have simply gone sideways. This makes sense, as we are heading towards the end of the year and many of the larger firms are staffed by Junior traders only. In other words, new positions are not being taken at this moment in time.

However, one cannot help but look at this chart and notice that the precipitous fall has suddenly stopped. The $1650 level was the site of a gap back in late August that has now been filled, and should act as support. We are still long-term bullish of the gold markets and as a result we are willing to buy in this general vicinity.