Gold Futures—Gold futures in the December contract is trading sharply lower this Tuesday afternoon in New York down $33 or 1.71% at 1,896 an ounce reversing the gains that we witnessed over the last 3 trading sessions as this market remains in a choppy trend.
At the current time I do not have any recommendations out of the precious metal sector as I’m keeping a close eye on silver as well as prices retreated on long liquidation as the prospects have faded for a new U.S. pandemic relief package. Stimulus talks remain deadlocked among U.S. lawmakers, and a breakthrough in stimulus negotiations is not seen until after the presidential election next month.
Gold prices are trading under their 20 day but still above their 100 day moving average as the trend is mixed and if you took a look at the daily chart the downtrend remains intact, however I think we are in the midst of a bottoming out process as I’m looking to be a buyer once prices hit a 4 week high as I will be patient as we could be involved in next week’s trade. In my opinion I believe that the U.S dollar will continue to move lower due to the fact of massive Federal stimulus as both are very bullish fundamental factors for higher prices which is not only for gold but for all asset classes so look to be a buyer.
CHART STRUCTURE: SOLID
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