Gold markets rose again on Monday as the risk on trade came back. The markets rose above the $1,650 level a few sessions ago, and the hammer on Friday has us suggesting that the market could see a building of upward pressure in this contract.

Monday saw this confirmed as the market shot to roughly $1,680 before pulling back slightly. While the market looks healthy going forward, it also looks like we might see more of a grind and less of a straight shot up. However, many of the fundamentals are suggesting that the value of gold should continue to rise. We are long and aiming for the $1,700 mark in the meantime. We also would consider buying on the pullback as long as we stay above the $1,650 level.

Gold

Gold Forecast January 24, 2012, Technical Analysis

Gold Pivot Points (Time Frame: 1 Day)

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
1651.4333
1659.1167
1666.3333
1674.0167
1681.2333
1688.9167
1696.1333

 Fibonacci
1659.1167
1664.8085
1668.3250
1674.0167
1679.7085
1683.2249
1688.9167

 Camarilla
1669.4525
1670.8184
1672.1842
1674.0167
1674.9158
1676.2817
1677.6475

 Woodie's
-
1659.0000
1666.1000
1673.9000
1681.0000
1688.8000
-

 DeMark's
-
-
1685.0750
-
1670.1750
-
-