Gold Prices January 14, 2013, Technical Analysis

The gold markets had a negative session on Friday, as the churn continues just above the $1640 level. The market looks like it’s trying to form a little bit of a base, and the cyclical side of things normally sees January as a positive month for gold as traders step back into the market after the holidays. Traditionally, we will selloff in the summer, and put the ball back up somewhere around January 10 or so.

Because of this, we are still bullish of this market and believe that a break above the $1680 level would be enough to send this market much higher. Quite frankly, we are even comfortable enough buying at this point time and if you are a little more aggressive you may feel so as well. As for selling, we have no interest in doing so right now as we feel the 12 year bull market is about to continue for 2013 as well.