UK Gold Trading Experts
  • Home
  • Trade Like a Pro
  • Gold Blog
  • Subscriber Resources
  • Legal Stuff
    • User Agreement
  • Contact Us

Gold Market Update - 3rd December 2020

3/12/2020

0 Comments

 
LONG TERM TREND                             BULLISH
INTERMEDIATE TERM TREND               BEARISH
SHORT TERM TREND                           BEARISH
VERY SHORT TERM TREND                  BULLISH

In our last update, we said we were watching support at the 200 day Moving Average and that we suspected this level would hold, though there was likely to be another test before the price started to move higher into December.

Since then, gold briefly broke below the 200 day Moving Average, finding support at 1764 before rebounding sharply.  The price is now approaching previous strong support at 1850 which will now act as initial resistance, however the December rally we have been predicting for months is clearly underway.

​We think there is likely to be a correction or period of consolidation below 1850 before breaking through this level later in December.  We expect the rally to continue well into the first quarter of 2021.

Gold is still trading below the 50 day Moving Average, currently at 1880, and the 89 day Moving Average, currently at 1911. These levels provide resistance in the short term.  The price remains just above the 200 day Moving Average which is currently at 1803.

Equities continue to grind higher, fuelled by unprecedented amounts of financial stimulus and liquidity and record low interest rates and continue to make all time highs on a regular basis.  As good news on vaccine development continues to arise on a regular basis, equities have pulled back a little but remain within striking distance of all time highs.

The Dow is currently at 29,823, just a few hundred points below the all time high of 30,214, and the S&P 500 is currently at 3,663, just 10 points below the all time high of 3,674 set on 9 November.

Oil prices have recovered strongly since testing $34 at the start of November and are now trading above $45 a barrel for the first time since March.  The chart still looks very bullish and we expect oil prices to rally further over the coming months.  Our initial target is $50 in the short term, with $55 the next target after that.
​
In gold, support can be found at 1825, 1810, 1800, 1790, 1765, 1750, 1715 and 1700.  In the medium term, we still expect further gains in the gold price would suggest a move towards 2,100 early next year is likely.
​
Short term resistance can be found at 1850, 1889, 1900, 1920, 1965, 2000, 2016 and 2077.  Gold needs to break the key resistance level around 1965 to give the bulls some renewed momentum and a move back towards the all time highs above 2000.

0 Comments



Leave a Reply.

    Old Posts

    August 2021
    July 2021
    June 2021
    May 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    March 2019
    January 2019
    December 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    March 2018
    February 2018
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    July 2016
    March 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011

UK Gold Trading Experts (UKGTE) is a trading name of Drupac Limited, a company registered in England and Wales (company number 09167819) whose registered office is 1 St. Paul's Square, Birmingham, B3 1QU.