• The Gold markets have fallen a bit during the trading session on Wednesday to show signs of hesitation.
• However, looks like the $1800 level is going to continue to be important, and offer a potential support level in the market.
• With that in mind, I like the idea of buying gold on these debts, because I do think that it is probably only a matter of time before we see buyers come back into this market. The market has been in a bit of a channel for a while, and I think that may continue to be the case.

If we can break above the highest that was made just a couple of days ago, then it’s possible the gold could go looking to the $1875 level. The $1875 level is an area that had previously been resistant, so I think it should continue to be, and at the very least it makes for an interesting target. However, this time of year features a severe lack of liquidity, and that can be a major issue. In that environment, we probably have the possibility of any move in the short term, based upon some errant announcement. After all, the trading world right now is more worried about holidays than anything else. Furthermore, we have the jobs number coming at the beginning of January which will be a reminder to people that the Federal Reserve is going to have to keep monetary policy tight.
 

Gold Likely to Keep Rising

If we break down below the 200-Day EMA, then it’s possible that we could drop down to the $1725 level, but I don’t necessarily think that’s the most likely of outcomes. After all, gold has been rallying for a while, and it’s also worth noting that the US dollar and the gold market can’t rise at the same time, despite what some people may have told you.

All things being equal, think we probably chop wood between now and the end of the year, which would be typical for this time of the calendar as the liquidity just isn’t going to be there, and it’s foolish to stick your neck out with a huge position right now. All things being equal though, does look like gold has quite a bit of momentum underneath it for the longer term, so I will be looking forward to continuing to rise in 2023.

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