Yes, but you know that it’s just a level on the chart that turns a market around. That level may turn out to be $1,850 in the December gold. $1,850 looks like it’s a decent support level so far. Unfortunately, this is a “rearview mirror” business and we won’t know for sure until it’s behind us. The gold market is oversold and does appear to be losing some momentum. I think that the gold and equity markets are disappointed in a lack of further stimulus. I know there’s a lot of talk about deflation. Fears of a slowing global economy and another UK lockdown. However, I do believe that there is a good long term buy level somewhere between $1,860 to $1,820. This is a correction. Not a reversal! Even without an immediate additional stimulus package, there’s a ton of money out there. The Dollar rally will likely fizzle out at .9500. Rising debt and deficit won’t suddenly evaporate. Uncertainty doesn’t suddenly become clear! The Fed is committed to keeping rates low for long and allowing inflation to overshoot their target rate. Gold is still something that we all should want to own, and this dip is a good buying opportunity.

Gold Dec ’20 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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