Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Gold: A Last Chance Sprint Toward $1,800 Before The End Of 2021?

By Investing.com (Barani Krishnan/Investing.com)CommoditiesDec 10, 2021 04:44AM ET
www.investing.com/analysis/gold-a-last-chance-sprint-toward-1800-before-the-end-of-2021-200611144
Gold: A Last Chance Sprint Toward $1,800 Before The End Of 2021?
By Investing.com (Barani Krishnan/Investing.com)   |  Dec 10, 2021 04:44AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Does gold have a chance to sprint toward $1,800 or even $1,900 before the year ends?

It depends pretty much on how the yellow metal reacts to Friday’s inflation data reflected by the Consumer Price Index.

Gold had an opportunity to reclaim the $1,900 mantle a week ago when it got to as high as $1,853 ounce in New York’s COMEX trading.

Settling above the $1,800 level has been a test of sorts for the front month contract on COMEX.

On Friday, COMEX’s spot gold contract peaked at just below $1,777 ahead of the release of the CPI for November.

The Federal Reserve is closely watching numbers on US inflation and employment, among others, to determine the timing for the first post-pandemic rate hike. The central bank kept rates unchanged at between zero and 0.25% since the COVID-19 outbreak in March 2020.

A rate hike will be negative in principle for gold prices.

Gold Daily
Gold Daily

All charts courtesy of skcharting.com

“Persistent selling pressure continues to haunt gold for the fourth week in a row,”  said Sunil Kumar Dixit, chief technical strategist at skcharting.com.

Dixit said the upside for gold appears capped at the 50% Fibonacci retracement level of the latest high of $,1797. Adding:

“The stochastic RSI has taken negative overlap in the daily and weekly charts but the monthly chart stochastic has made positive overlap hinting at last ditch recovery to retest middle Bollinger Band of $1,818 and 38.2% fibonacci level $1,825.” 

Whether gold scales above the $1,800 boundary and reclaims the $1,825-$1,860 or plunges to $1,720 broadly depends on the trend key levels of $1,797 and $1,761, said gold blogger Dhwani Mehta said in a post on FX Street.

Gold Weekly
Gold Weekly

“Gold is back in the red, looking to test the critical $1,760 support area, with all eyes on the US inflation numbers,” said Mehta.

“Only a daily closing above the key $1,792 confluence will open doors for further recovery, with the next immediate hurdle seen at 50-DMA, now at $1,796. The bulls will then target the $1,800 figure.”

Mehta said on the flip side, immediate support for COMEX gold was seen at the previous day’s low of $1,773. The Nov. 3 low at $1,766 could then be on buyers’ radars, she said.

Gold bulls remain hopeful while the horizontal trendline support pegged at $1,760, she noted.

Gold Monthly
Gold Monthly

Disclaimer: Barani Krishnan uses a range of views outside his own to bring diversity to his analysis of any market. For neutrality, he sometimes presents contrarian views and market variables. He does not hold a position in the commodities and securities he writes about.

Gold: A Last Chance Sprint Toward $1,800 Before The End Of 2021?
 

Related Articles

Gold: A Last Chance Sprint Toward $1,800 Before The End Of 2021?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (8)
Robert Flores
Robert Flores Dec 13, 2021 1:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How will basel 3 affect gold prices!!
SunilKumar Dixit
SunilKumarDixit Dec 10, 2021 8:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It has become a ritual to hammer PMs on high voltage events. However, this time PMs can rally to pair losses as year end comes nigh.
SunilKumar Dixit
SunilKumarDixit Dec 10, 2021 8:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It has become a ritual to hammer PMs on high voltage events.
Kristof Naessens
Kristof Naessens Dec 10, 2021 7:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Expect a smash right after cpi and then up. On the silver side there are spoof bids by the bank to the 21.70 range. By smashing the precious metals relentlesly government and banks are creating the narrative that inflation is bad for gold and silver. The Fed's only tool to fight inflation is raising rates, watch what happens to the economy and stockmarket when they try that. In fact they will probabely halt taper and print even more.
Vincenzo Tilotta
Vincenzo Tilotta Dec 10, 2021 7:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Which confirms that gold and silver at this point are uninvestable, because the Fed will always print more paper gold to suppress real prices in order to feed their criminal narrative that "see, pms are so low in price, there is no inflation to worry about", together with the manipulation they already do of the cpi to keep the figure as low as possible. Btc is the only asset they cannot print, going to replace pms probably
Kristof Naessens
Kristof Naessens Dec 10, 2021 7:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Vincenzo Tilotta  It can't be held down forever, while the west is 'selling' paper, the east is buying the physical, if not prices would still be at the 1980's level! Stock's at Comex are being drained all year, just a matter of time, silver inventories are already below 100 million ounces in registered.
SunilKumar Dixit
SunilKumarDixit Dec 10, 2021 7:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Vincenzo. The Fed has been playing this dirty game for quite a while and been successful in keeping PMs artificially low and choked. But as the old adage goes, every dog has a day... Gold and its kins will have their day too.
Vincenzo Tilotta
Vincenzo Tilotta Dec 10, 2021 7:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Its so ridiculous, because gold should go up with the big CPI reading we are getting today, and then "traders" will push the price down again because of the narrative "we think now the fed will raise rates so we crush gold"......... That has been the play for months of high CPIs.......... Hopefully, the gold bugs are expecting the market to wake up once the market realises the Fed is too scared to raise rates, and at that point, when the market realises rates will be at zero for the next 10 years, then gold should rally strong then, as long as they dont manage to manipulate it with paper
Kristof Naessens
Kristof Naessens Dec 10, 2021 7:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It is indeed ridiculous, but watch what they do instead of what they say. Central banks all over the world started stockpiling gold, excect probabely the US and canada. The moment Russia and China back their money with gold it's game over for the west. The US was great once, now it has become so corrupted, relocated their production abroad, the only thing keeping the US afloat is the dollar hegemony which won't last forever.
SunilKumar Dixit
SunilKumarDixit Dec 10, 2021 7:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Kristof. You said it right. Dollar hegemony is all but hot air balloon with weak fundamentals.
Ali Kiani
Ali Kiani Dec 10, 2021 6:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
1758 to 1815Then1815 to 1680
ahmad ebrahimi
ahmad ebrahimi Dec 10, 2021 6:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good
Bonsu Manuel
Bonsu Manuel Dec 10, 2021 5:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
1702 bound
Dec 10, 2021 5:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If cpi is historical low yes …we may as well 1900 today , CPI will be higher
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email