Unfortunately for the gold bulls we are going to have to see some weak economic data or “bad” news for gold prices to break out above the $1,825 to $1,830 range. The gold market has lost its luster after the initial euphoria of a “dovish” fed at the virtual Davos symposium. The gold traders are now starting to realize that we are probably closer to tapering than what they would like. Tapering does not equal rate hikes though, and the Fed is still at emergency levels of liquidity. The supply chain is still faltering, and people are still being paid more to stay home than to go to work. Surging Covid cases and mask mandates are keeping a lid on the economy and that’s the only reason that gold is still above $1,800 in my opinion.
I remain long term bullish on gold, however, I still believe that the market may still need to move lower again first. Perhaps to $1,750 or even $1,720