Gold (XAU/USD) daily chart
Once again, the bullish momentum for gold continues to impress. After a brief retreat back near $2,600, gold is catching a solid bounce since the end of last week to now hit $2,674 levels. That is seeing price action close in on the record high of $2,685 set out at the end of last month.
What is impressive is that the bullish momentum in gold is holding up nicely despite a stronger dollar in recent weeks.
One can make the argument that if not the Fed, then other major central banks might be looking to ease quicker down the road; namely the ECB, BOE, and BOC now. So, there’s always some reason for gold bulls to allude to even if it may not make that much sense.
But I would say that the story for gold has been more or less the same for most parts of the year. And that is: What would it really take for a pullback in gold prices?
The debate there continues and now more crucially so as the window is closing ahead of the bullish seasonal months in December and January. Are we to see profit taking in gold in the weeks ahead or is gold going to embark on a combusting run to the moon to end the year?