Gold markets have rebounded after falling sharply at the open on Friday, turning upside down and showing signs of life again. Now it looks like it’s going to continue to float up here and try to break through the resistance at the $ 1,820 level above. If successful, I think it would be a very positive sign for gold and could send it up to $ 1,870.
So we are going to have to wait to see if we really manage to break above that level or not since it has been quite complicated in the past, and we are also in a complicated week due to the lack of usual liquidity at this time. My impression is that the market does want to go up, but the question is whether it will be strong enough to do so. On a technical level, I would highlight that the 200-day average is just at the bottom of the candle for the day and that it is trading flat, which suggests that there could be a break to the upside.
If there is finally a daily close above $ 1,820 I will go long in gold because I will think that the price could go up about $ 50 in no time. On the other hand, if we fall and cross $ 1775, I expect the downward pressure to increase, although in the current configuration that scenario seems quite unlikely. For me, the big question is whether there will be enough investors next week to be able to generate that upward movement I am talking about or if we are going to have to wait until January.