As gold enters the final trading session of 2012, the market has broken above the 200 DMA and the second down trend line, suggesting that the price is poised to move higher.

We expect resistance at the 20 DMA and third down trend line, both coming in at 1688.  Should the price move above this level, the bulls will consider themselves firmly back in charge, with eyes on 1730 and 1755 and ulitmately 1800.

2013 promises to be another exciting year for gold, we expect a 13th annual gain and would be very surprised if we do not see a return to double digit % growth.

For our subscribers at www.goldtradingexperts.com, today's video looks at the gold market in 2012 in more detail and our thoughts for our current trade.

Yesterday was a predictably quiet day of trading, an "inside day" forming a doji on the daily chart.  Gold is currently trading around the 200 DMA at 1661, finding resistance at the down trend line and the moving average.

If the market can clear this area, the next resistance area is at 1685, with the 20 DMA at 1689 above that.

We expect another quiet day of trading as 2012 draws to a close - barring any catastrophe over the next couple of trading sessions, gold will score a 12th consecutive annual gain, though the gain in 2012 will only be in the region of 6%.

For our subscribers at www.goldtradingexperts.com, today's video looks at the resistance levels in more detail and our strategy and target for our current trade.

In very quiet holiday trading, gold has drifted higher and appears to be forming a base above 1650.  The market needs to reclaim the 200 DMA at 1661 as a first target and is currently trading around 1657. 

Above the 200 DMA, the next resistance levels are the down trend line at 1670 and the 20 DMA at 1687.  The price needs to get back above 1703 for the bulls to be firmly back in charge, though a close above the 200 DMA will alert traders that a temporary bottom is in place.

For our subscribers at www.goldtradingexperts.com, today's video looks at the resistance levels in more detail and the last few trading sessions price action.

After making a "double bottom" at 1635 overnight on Friday, gold climbed steadily all day, closing at 1657.  Gold has opened today on a positive note, building on the gains of Friday and reclaiming the 200 DMA to trade around 1665.

Gold has broken the steepest downtrend line, bringing the decline to a temporary halt and needs to breach the second line at 1684 for the bulls to get back in charge.  We expect gold to find resistance in the 1675-1685 area, though there is clearly some value seen in the price at these levels.

We expect a quiet trading session due to the Christmas holiday tomorrow and Wednesday - the rest of this week will also be quiet.

Wishing all of our readers a Merry Christmas and a very propserous New Year!

We noted yesterday that, although gold had bounced twice off the 200 DMA, the recovery had been very weak and suggested further selling was to come.

Yesterday we got precisely that - gold sold off by $35 after the release of stronger than expected US data, eventually finding support at 1635, just a few dollars off our Wave C target of 1630.

Overnight, gold made a "double bottom" at 1635, giving a tentative indication that a bottom may be forming.  With the RSI on the daily chart at 23, the lowest level since May 2011, the immediate downside from here looks to be limited.  Whether 1635 proves to be the long awaited Wave C low remains to be seen.

Gold sold off again yesterday after a weak bounce in the morning session, though found support at the 200 DMA for the second day in succession.

The market has so far failed to move higher from this "double bottom" and is trading around 1670, remaining below the Wave A bottom and poised to fall further in the next few trading sessions.

The dollar has been consistently falling recently and oil is powering higher, it is concerning that gold is not moving higher in this supportive environment, though wit the RSI near 30, we do not expect the price to fall a lot further.

For our subscribers at www.goldtradingexperts.com, today's video looks at the last few days trading in more detail and our target for this Wave C.

Gold drifted lower in the early part of the trading session before accelerating to the downside in the afternoon.  Once the support at 1685 gave way, the market fell away dramatically, breaching key support at the Wave A low of 1672 and falling all the way to the 200 DMA at 1661 before finding some buying interest.

The breach of 1672 is a bearish development and portends lower prices ahead.  The market has bounced mildly overnight and this morning, however the buying is less than enthusiastic and we expect the selling to resume shortly.

It appears that Wave 2 is now forming a "normal" ABC correction and we are in the final stages of Wave C.

For our subscribers at www.goldtradingexperts.com, today's video looks at our target for the Wave C low in detail and our reasoning in choosing this target.

After forming a bullish "hammer" candlestick on the daily chart yesterday, gold is attempting to rally off lows in the 1685 support area. 

The market is coming up against resistance at Thursday's high of 1703 and looks to be running out of steam already.

There are a whole host of resistance levels overhead and in light "holiday" type trading, it is now difficult to see gold staging a significant rally before the new year.

For our subscribers at www.goldtradingexperts.com, today's video looks at yesterday's price action in more detail and our thoughts on the rest of the week's likely trading scenarios.

In very quiet trading on Friday, gold failed to rally above 1700 or recoup any of Thursday's losses.  This does not bode well for the short term price action and this week has started on a bearish note, with gold probing the high 1680s and looking to be headed lower.

We commented last week that the failure to hold above 1705 suggested lower prices and a retest of 1672, this remains our view.  A break of 1672 will likely see a sharp drop towards 1630, if that level does not hold then the major Wave 2 support 1525 comes back into play.

For our subscribers at www.goldtradingexperts.com, today's video looks at the strategy for our next trade in more detail.

Gold remained under pressure all day yesterday, falling to a low of 1689 in the afternoon before rallying weakly back up to 1700.  The uninspiring recovery continued this morning, with gold failing to break above 1700 and poised for further losses.

We expect a test of 1672 shortly, and should that give way the next target is 1630.  The action of the last couple of days has turned the charts bearish on a short term time frame and it would take a move above 1718 to change this view.

For our subscribers at www.goldtradingexperts.com, today's video looks at yesterday's action in more detail and the short term chart pattern developing.