In the early morning trade, December gold is trading slightly up at $1,510 an ounce. Gold continues to hold onto the $1,500 an ounce handle and with a light U.S. economic report slated for today, the shiny one should be able to end the week above it. December gold should enjoy continued support from weakness in the US dollar and the ongoing tensions in the Middle East with Iran. Furthermore, the bull camp gained more support with the overnight Saudi attacks on parts of Yemen, which claimed responsibility for the attacks over last weekend on Saudi Arabia’s oil production.
If we take a quick look at the daily December gold chart, you’ll clearly see that gold is still holding onto its strong up trend and still trading in its bullish up trending channel as well. If gold can trade and hold above last week high of $1,532, then gold is prone to test the top of the channel which is well above $1,600 an ounce at this time. I have highlighted these levels below on my RJO Pro daily December gold chart.