Trading volumes will be back to normal this week after the holiday. We would expect Gold to range trade between 1970.00 and 2050.00 this week. Gold is heading into overbought territory and a small pullback in prices would not be negative in the long run. The month of December is typically a positive month for precious metals prices, and we expect to see volatility continue. Ultimately, we see a move higher into year end towards 2100.00 with the possibility of even higher highs.
Trading activity and volumes this week will be lighter than usual owing to the U.S. Thanksgiving Holiday on Thursday. The Gold market saw solid bullish momentum since the CPI release on Tuesday and prices bounced off the recent low of 1935.00 an ounce. The rally took us ever so close to 2000.00 an ounce again. Investors are hoping inflation is under control and interest rates will start to fall as soon as May next year. We would expect Gold and Silver to trade in that range of Gold 1935.00-2000.00 and Silver 22.00 – 24.25 baring any major news on the war fronts.
Fed Chair Jerome Powell’s comments continue to support U.S. Dollar strength and elevated bond yields, two significant headwinds for Gold. With the Fed’s tightening bias, there is no big reason to buy gold right now. The Israeli – Hamas war continues with no significant changes developing yet. The geopolitical uncertainty that produced the frenzied buying has slowed for now with investors sidelined in the Gold and Silver market at this time. As a result of this we would expect Gold to test 1900.00 and Silver 21.00 to 21.50 this week. We remain bullish Gold and Silver into year end and next year and would view this as a time to add some precious metals to your savings.
Gold finished the week just under $2,000 an ounce at $1,992 per ounce. The Geopolitical tensions have continued in the war between Israel and Hamas with the ground assault in full swing. The bombing of Gaza has continued nonstop since October seventh and a ceasefire is being demanded by citizens around the world without any affect. Israel is refusing for now, but this must change soon. When this happens, Gold and Silver will pull back initially from there over bought territory to support levels in the $1900 to the $1950 area for Gold and Silver to the $22.00 to $22.50 level. With inflation still high around 4.0%, interest rates hovering around 5.25%, and oil which is going up and down like a yoyo, we expect Gold and Silver to bounce back and move higher into the year end.