
December gold futures have cracked the most important trend line in recent months, as gold is now set to make new highs and once again climb back above the all too important $2000 level. My most recent write up on gold basically stated that unless that trend was broken, and a close was above roughly $1925 or above (breaking the trend line lower) that we would likely see a push higher from that point on. I think the technical aspect for a bullish bet on gold now seems to make sense. Fundamentally, everyone is going to have their own theory on metals often especially. The inflation aspect could very well be the biggest factor here as a Biden presidency might mean even more stimulus than the original bill was calling for. It appears that endless money printing by the fed is going to continue, and once again keep the bullish case longer term for gold alive and well. India and China have been buying quite a bit of gold in the spot market as of recent, and the gold and silver ETF inflows have been increased month over month week after week for quite some time and should continue to support the physical buying. Last but not least the USD index seems to be once again get shoved to the side and new lows are expected sooner than later. Yesterday the December USD index futures hit fresh recent lows and it appears that another close beneath the contract lows will come soon, boosting golds chances at a return to glory. Traders should consider a number of bullish bets but exercise caution as the volatility is nowhere near gone.
