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Gold Prices Forecast December 3, 2012, Technical Analysis

By:
Christopher Lewis
Updated: Aug 20, 2015, 23:00 UTC

The gold markets fell during the session on Friday as the volatility continued. Quite frankly, this market does look like it's ready to pullback a little

Gold Prices Forecast December 3, 2012, Technical Analysis

The gold markets fell during the session on Friday as the volatility continued. Quite frankly, this market does look like it’s ready to pullback a little bit but the $1700 level looks like it’s ready to offer quite a bit of support as well. We still believe in the long term bullishness of gold, and as such will continue to buy it on dips that show support of price action.

We are holders of the GLD ETF as most of you know, as well as physical gold. So in this sense, we are simply long of gold at all times, and it’s only a question of how long we are. We use the futures market as a way to turbo boost our returns, and as such have the ability to be very picky as we still have the physical gold and the ETF in order to take advantage of the longer-term trend.

We still see anything above $1500 as a possible buying zone in this market. Because of this, supportive candles will be bought over and over again as we plan on writing this market all the way up to the $2000 an ounce level. With central banks currently looking ready to spend more and more, it seems like gold has nowhere to go but up over the longer-term. This is especially true in the United States, as the Federal Reserve looks set to embark on further quantitative easing during the month of December.

If this does in fact happen, it should provide more support for gold which is already much supported. This is been a nice one way trade most of the last decade, and because of that we simply do not want to trade against that type of bullishness. There has been a few times in the past were we thought gold could be “too expensive”, like when we broke the $1000 an ounce level. Looking back now, it seems kind of funny to think that at one point in time it was ridiculous that gold was over $1000 an ounce. We have the sneaking suspicion that we will feel the same thing about $2000 an ounce sometime next year.

 

Gold Prices Forecast December 3, 2012, Technical Analysis
Gold Prices Forecast December 3, 2012, Technical Analysis

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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