At present, gold is caught in a medium-term corrective cycle, while long-term price charts and macro fundamentals still firmly favor the safe-haven metal going higher once a now 6-week correction has run its course.
As mentioned in this column heading into the U.S. presidential election, gold had been long overdue for a 5-10% correction. The 54% 12-month surge in bullion into the end of October had yet to experience as much as a 5% correction heading into a chaotic U.S. election, with the overwhelming result having led to some healthy profit taking from an extreme overbought situation.
After a year-long $978 move higher peaked at $2802 on October 30, Gold Futures fell by nearly 10% in just 13 trading sessions to a November 14 low at $2541. Bullion has been consolidating this sharp move lower within a symmetrical triangle above support on its rising 18-week moving average, now at $2640.
For the rest of this column: https://www.kitco.com/opinion/2024-12-06/gold-consolidating-outsized-2024-gains-december