Gold price in the Coming Months!

 

Gold and Silver Sentiment to Rise Sharply 

ABC Bullion Market Update views a gold and silver sentiment to rise sharply in the coming months! In the Precious Metals Commentary, the bullion said, gold continues its strong recovery, but hit the resistance discussed in last week’s commentary (…Resistance in gold should come in at US$1888-1910…) with gold making a high so far at US$1896. There is distinct resistance at the US$1908 level.

The Dollar Index is a big factor behind gold’s move as correlations between gold and Treasury-Inflation Linked bond yields (TIPS) weaken relative to early 2020. The DXY’s move to 89.73 takes it very close to the 50% retracement of the move from the 2011 lows to the 2017 high at 88.20, and along with medium-term target to 89.90 and 89.60 level, there is the suggestion that the recent move downwards in the Dollar index may pause soon. 

There are signs that non-commercials longs are tentatively trying to increase their exposure to the DXY from the very low levels seen in September and November. 

CME Managed Money longs increased by 1.340 million Tozs by the 8th of December & Gold ETF outflows continue but in a muted manner. The essentials behind gold’s rise are stimulus efforts with both parties stressing the need for action. The rise in Coronavirus cases underscores deepening economic risks through H1 of 2021, with the USD dollar slipping.