Once again gold futures most actively traded contract fails to break out above $1,950! I’m surprised that all the talk about additional stimulus checks going out isn’t more supportive. So now if $1,850 support fails to hold, the 200 DMA comes in at $1,852, then you should look for a test of $1,825 range. Buyers should get more aggressive in that range. I remain bullish metals. A bounce in the Dollar contributes a bit to the weakness, but I’m also aware of what’s going on in Bitcoin. It certainly looks like funds are reallocating from gold to BTC. I don’t want to get off subject here, but we must watch outside markets and right now BTC is on fire. When, not if, the Bitcoin bubble burst you’re going to see a flight to safety in gold. Bitcoin will not replace gold.
Buying the low end of this current trading range should continue to work. The new administration will continue to print money and hand out checks and devalue the Dollar. Nothing changes. Maybe only gets more aggressive, so therefore gold prices will be well supported and eventually breakout above $2,000. There’s just too much cash out there and people like things that they can touch…like gold.