Gold Forecast for the Week of December 26, 2011, Technical Analysis

Gold markets rose for the week, but had a tough time rising much above the $1,600 level. The market is currently sitting on top of a massive support area from the $1,500 level to the $1,600 level. The consensus is that there is enough money printing about to happen in order to drive the value of this market up to the $2,000 level during 2012. The recent action could be classified as a simple liquidation at the end of the year for traders and funds collecting profits. The $1,500 level would have to be broken to the downside for us to consider selling at this point, and by all accounts we are looking for supportive candles to buy from at this point. With the recent fall, it is very likely we will see a substantial bounce soon.