Gold Forecast Today 30/12: Struggles Near $2,600 (Video)

(MENAFN- Daily Forex)

• Gold sold off a bit during the trading session on Friday as pretty much anything risk related has had a tough day.
• It looks like everybody has made their profit at the end of the year in the stock market and it looks like probably some of the same here.
• Although gold has a whole plethora of reasons why it might struggle.

For example, one of the biggest issues will be the fact that interest rates in America continue to climb quite drastically. If that's the case, then it's hard to really get traction in the gold market. I think at this point in time, you need to be looking more or less through the prism of whether or not the $2,600 level can hold. If it does not, and we break down through that uptrend line just below, that could be rather ugly.

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Anything below there opens up the possibility of a move down to the $2,500 level. If we do break above the 50-day EMA, which is sitting just above and near the $2,645 level, then it opens up the possibility of a move to the $2,700 level, which is where we had recently formed a double top. The double top, of course, is a fairly strong sign that we are going to struggle, but I also recognize that we have a scenario where liquidity is disappearing, and the market might just go sideways for a while.

EURUSD Chart by TradingView

I wouldn't put huge positions on regardless because if we do get some type of newsflash across the wire, it could send the market haywire in a situation where there just aren't that many people involved. I think in the next week or so, gold's probably more or less neutral. This could be the case for the next couple of weeks, but eventually I expect the bond market in the gold market both to pick up quite a bit of momentum.

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