According to Kitco’s monthly gold price poll, Wall Street analysts are unclear about where gold will go next after failing at $1,800 an ounce this week, but Main Street remains bullish.
After gaining $40 in the middle of the week on stronger-than-expected inflation figures, gold was unable to sustainably break over the psychologically crucial $1,800 per ounce mark, triggering another round of selling.
December Comex gold futures were trading at $1,768.00 at the time of writing, down 1.66 percent on the day but slightly higher on the week.
The gold markets plummeted sharply during Friday’s trading session, indicating a lack of strength. However, there are a number of reasons to believe that resistance would be an issue.
The 200-day exponential moving average (EMA) has provided some resistance to gold markets throughout Friday’s trading session. Furthermore, the $1800 level was significant from a psychological and structural standpoint, as evidenced by the downtrend line I have drawn on the chart. The question of whether we can continue to go lower is a different one, but it appears that purchasers will continue to suffer at this time.