Gold Prices Forecast December 26, 2012, Technical Analysis

The gold markets rose slightly during the shortened Monday session as most of the Western world celebrated Christmas Even. Because of the light volume, only so much can be read into this chart, but one cannot help but notice the nice hammer that formed on Friday.

Because of this, we think that this market will continue higher, and as a result are willing to buy right now. There is obvious support at the $1650 level, and as a result we are ready to start buying again. Many of the large funds around the world have to sell their gold positions in December in order to realize a profit; we think this is what’s been going on. Once we get back into the month of January, traders will be looking to put their positions back on in the gold markets, and we want to be there before they are.