It is still too early to say for sure, but gold does look like it’s about to breakout above the 200-day moving average. A close above $1,800 would be very positive for the gold bulls and considered a technical breakout. Of course, we will need to see a confirmation with another day or two of follow thru to the upside. It’s important to note that the treasury yields have been trending higher as inflation becomes undeniable and longer lasting. So, one could conclude that gold’s rally is a sign of inflation fears. Gold is the “inflationary hedge” and it is just a matter of time before gold moves higher due to inflation really heating up. I’m surprised that it has taken so long. But, again, I must stress the importance of a confirmation that the breakout is real. At the time of this writing (Friday morning) December gold is trading at $1,808. It’s early and I need to see a close up here. Followed by another close above $1,800. It will be inflationary fears that drive the next big bull market in gold.

Gold Dec ’21 Daily Chart
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Frank J. Cholly

Senior Market Strategist
Frank is a swap registered trader who brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker.
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