December Gold: Where Do We Go From Here?Posted 11/10/2017 8:50AM CT |
Gold has seen very positive price action over the past few sessions, but does it continue from here? The fundamental reasons why gold should continue to move up are strong. Right now, it appears that the equity markets are a bit overheated. We have seen a bit of a pullback yesterday as the market reacted to news that the republican led tax reform bill has seen a setback on the corporate tax cut not seen until 2019. This is a much bigger deal that most make it out to be. Right now, the equity markets are pricing in a perfect tax bill that will be implemented over the next 6 months. Something such as this delay in a corporate tax bill have ramifications that could drive gold futures higher. We also have things starting to heat up over in North Korea once more. It seems a deal is less likely after a direct statement from President Trump. A military solution over the next year seems more likely than not.
If you look at the gold market from a technical perspective, it seems gold is going to continue to march higher, with confirmation of a change in trend with a close above 1300. We found much needed support at the 200 day moving average, and are currently trying to blow through the 50 and 100-day. We have seen the MACD cross indicating a buy, and are not in an overbought or oversold territory.
Dec ’17 Gold Daily Chart