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Gold Set To End Year Mammoth 25% Loss

ByGoldTradingExperts.com
Published 12/26/2013, 11:50 PM
Updated 07/09/2023, 06:31 AM
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Gold is rising slightly in light trading after testing the crucial $1180 area last week. We expected a bounce off this area after the first test and this is playing out as expected.

However, we do expect $1180 to yield on the next test, when it ultimately comes.

Gold is set to end the year with a mammoth 25% loss and near to the lows of the year - in our opinion we will see $1000 gold in the first quarter of next year.

The big question for us will be whether gold can hold $1000-$1050 or whether we fall all the way back to 700-800.

Equities continue to climb relentlessly higher, drawing funds and investor interest away from gold, whilst a weak dollar is not helping gold at all, a very worrying development for the yellow metal.

Next week should see more quiet trading in gold and other markets and we do not expect normailty to resume until the week of 6 January, where we will get a good idea of the trends for the first quarter as funds are allocated by fund managers and investors.

Support can be found at $1210, $1200, $1190, $1188 and $1180. A break of $1$180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term.

Resistance can be found at $1220-$1225, $1237-$1240, $1245, $1250-$1255, $1268-$1270, $1277-$1280 and $1291-$1295. A break above $1250 would suggest an end to the short term down trend, though it would take a break of $1300 to suggest a more significant rally was developing.

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