Gold Prices December 10, 2012, Technical Analysis

The gold markets fell during the first half of the session on Friday, but got a bounce as soon as we got underneath the $1700 level. This is the second hammer in a row, and suggests that we are going to see support come into play every time we touch the $1700 level.

Because of this, we are bullish of this market again, and certainly are ready to start buying it on a break of the Friday highs. We think that the market will grind its way up to $1760, and possibly even higher. Eventually, we do see a move above the $1800 level, but with us being this late in the year; it’s hard to believe that the markets will suddenly pile on a massive “risk on” type of trade like buying gold. Instead, we think it’s going to be a gradual grind higher.