All Quiet on the Gold Front

gold nuggets

Trading activity is already slowing down before the upcoming holiday weekend, and it will probably be even quieter the next couple of days unless something shocking crops up unexpectedly in the world. Gold prices ended fairly steady today, but there are still no clear signals pointing toward a market bottom.

This where the technical aspects currently stand:

  • Gold futures prices for February closed about mid-range
  • The daily bar chart shows prices as being in a 6 month old downtrend.
  • Gold Bears want to look for a break below the solid technical support of $1,100.
  • Gold Bulls need a close above $1,168, which was last week’s high.
  • Resistance will be at $1,144.40, then $1,150.
  • Support will be at $1,124.30, then $1,120

Some mixed news is now available from information provided by a Transparency Market Research (TMR) study.

The study indicates states that gold is currently being oversold in the bear market because of the precious metal’s escalating prices, but it is still considered the safest investment during times of geopolitical crisis, currency fluctuations and high inflation.

However, recent events seem to indicate that these situations do not have the same influence they once did. Though it remains to be seen if that will continue to be true in the future.

Both rising confidence and increasing demand were noted in the study, as well as an expectation of higher prices, although there was some mention made of the possibility that other factors could affect the global gold market, as well.

“The purchase of gold is expected to rise as consumers are focusing on long-term investments. As the confidence over bullion as a secure mode of investment is rising, the demand for gold is also rising at a considerable rate. However factors such as degrading ore grades, technical issues, and strikes are anticipated to hamper the growth of the global gold market.”