Within the first week of December, it regarded like gold was set for a little bit of a actuality verify after the rally above $2,100 fizzled somewhat rapidly. That noticed value dip again beneath $2,000 however gold bugs have positively salvaged the state of affairs in a push to a file excessive shut this week. Thinner liquidity situations should forged some doubts over the most recent transfer increased however there are factors to argue for gold to chase an extra transfer increased heading into subsequent yr.
And the seasonal tailwind in January is arguably one of many strongest factors there may very well be in advocating for an extension increased.
Amid lighter buying and selling this week, gold is now at $2,077 and posted a file each day shut in buying and selling yesterday. It is likely to be powerful to look an excessive amount of into the strikes in the intervening time however there may be positively a sense that gold bugs are getting somewhat too anxious in attempting to tug the valuable metallic previous the $2,100 mark and to new heights at this level.
The best way I see it, gold is poised for one among two issues now. It’s both we go off to the races to begin the brand new yr i.e. contemporary file highs, or we get a notable squeeze decrease earlier than patrons reload on lengthy positions. It could actually shock me if we obtained a quiet and sluggish January, all issues thought-about.
As for the hesitancy to say which is extra possible, it’s to do with the truth that I closely detest studying an excessive amount of into year-end and skinny liquidity strikes corresponding to what we’re seeing this week. As such, I nonetheless do maintain some reservations in regards to the excessive factors for gold on the week at the moment.
