GOLD NEWS











This week gold traded to a low of $1699 and is currently fixed at $1722.60 after factoring in yesterday’s recovery and today’s gain of $13.30. Based on the last four times that gold tested $1680 and recovered I would not be surprised to see gold once again test $1680 in the next couple of weeks, and although historical performance does not in any way guarantee that that $1680 will effectively hold and continue to be a strong level of support it seems that we can draw a line in the sand and acknowledge that this is a critical level and any break below that could lead to a strong price decline.



























The chart above is a monthly chart of gold futures. The horizontal red line is fixed at $1680 per ounce. In December 2012 gold futures opened at $1770 traded to a low of $1635 and then settled at $1671. This would be the last time that gold was valued above $1700 until April 2020. Gold prices would drift lower until December 2015 when gold hit a low of $1046. This would also mark the beginning of a multiyear rally in which gold moved from approximately $1000 at the beginning of 2016 to its current record high of $2088 in August 2020.