Gold
In sensing the next direction for gold it is helpful to be aware that the etf investors that really helped push gold higher are continuing to retreat.
So far the holdings in bullion backed etf's have fallen by more than a million ounces in November. This puts them on course for the first monthly decrease this year. Gold has been struggling since November 09 and the news of Pfizer's/BioNtech's vaccine news. The sudden spike higher in US 10 Y bond yields sent the precious metal falling and the USD pushing higher.
Since the initial reaction in the US10 year yields and the USD we have seen the USD drift lower again which is supportive for gold. However, the retreat from etf investors is not and does continue to make the case for near term downside.
However, $1800/$1820 looks like a decent support level. The case for gold buyers has certainly not gone as interest rates around the world are still expected to stay low for years. QE shows no signs of slowing and large demand from China should return in time for the Lunar New Year. See last weeks post here. Conservative traders could always take a break on the trending higher. If the trend line fails after a break then pull the longs and come back another day. Slowing etf outflows would be a great sign for a bullish move higher and could be a great cue for timing a long into early 2021.
