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The Three Must Watch Charts For Gold investors

Commentaries & Views

Gold has been building a bottom for the past four months and there have been two key range areas to watch. The first consolidation levels are between $1173 and $1225 and the second are $1200 and $1250. We have actively seen a step up with investor buying and Central Bank purchases recently. Investors began once Federal Reserve Chairman Powell took a move dovish stance on interest rates. Since then the IMF had stepped up projections on Central Gold purchases. On December 19 the Federal Reserve will have their next meeting on interest rates.

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As the gold market heats up here are three charts investors need to keep their eye on:

Important Chart #1 December Dollar Index

Here’s why: We have a double top on the Dollar forming at 97.50 and with the Fed near the end of its interest rate hike cycle, we may see lower prices potentially boosting the price of gold.

Important Chart #2 December Emini S&P

Here’s why: Back on October 11 we saw the S&P fall 100 points and closed on the 200 DMA. At that point gold futures surged over $30/oz. With Tuesday’s selloff of 90 points, we are setting up for another retest of the November lows and this could help boost gold.

Important Chart #3 February Gold

Here’s why: Gold futures since August have started a new consolidation range step up. A potential breakout could lead to another consolidation range with $1250 as the new support and $1277 as the new resistance (200 DMA)

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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