Gold Prices Forecast December 20, 2012, Technical Analysis
The gold markets fell precipitously during the session on Tuesday, and had a negative tone as well on Wednesday, but currently sits above the 200 day exponential moving average that should offer support. There’s also a cluster of by orders back at the $1650 level from the month of August that should offer support as well.
At the end of the year, it is quite common for traders to selloff their highly profitable metals trades. We think that one of the major driving factors for this market falling lately is just that. Typically, they will get back into the market during the month of January, and drive prices higher. We believe in the near-term we will find some type of support in this general vicinity, and would not hesitate to buy a supportive candle going forward. In the meantime though, we will sit still.
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