Gold price was choppy during Monday’s trading session Monday on thin liquidity.
The market broke down below the 50-Day EMA, but then reversed to show signs of strength again.
But, I believe this is a market that will continue driving North, perhaps reaching to the 1950oz mark.
Keep in mind that the gold markets have a negative correlation to the USD, so pay attention to that number too.
On the Southside
The 200-Day EMA sits at 1800, and that should be “floor the market” when it comes down to the gold market uptrend.
On the Northside
The 2000 mark is now a longer-term target, perhaps even to 2400.
Savvy traders have no interest in shorting gold now, but are buying short-term dips, as there are lots of reasons to believe that stimulus in the US is going to continue for a long time, plus there is a certain amount of a “safety trade” when it comes to gold.
Gold will not go straight North, but the pattern give us a Bullish attitude going forward from what we glean from the technicals.
According to industry investor, Bruce WD Barren, “Yes, gold should go up in steps for a base has now been solidified at the 1800 per troy ounce level. A driver to this will be the continued effect of our Federal deficits which will cause a further deterioration of the US Dollar, a gold driver.”
Below appears to be a composite reasonable forecast for gold per troy ounce by some of the industry experts.
Have a healthy, Happy Christmas Week, Keep the Faith!