December Gold Futures – Daily Chart
December gold futures closed the week higher once again ending the gold trading session and the week at $1772.70 per ounce and pushing towards the $1800 per ounce region again. Friday’s trading session was relatively muted following Thursday’s surge higher with gold propelled upwards following the statement from Fed Chairman Ben Bernanke that a further stimulus of $40 billion per month would now be pumped into the US economy as QE3 was duly rolled out, much as expected. With further economic stimulus comes a weak dollar and as Hawkeye has been forecasting for some time, a bullish trend for gold, which along with other commodities such as silver and oil, has received a boost to current short term trends as a result.
Friday’s price action was in a narrow range, as the gold market paused for breath, with speculators and investors squaring their positions ahead of the weekend. Nevertheless, the daily trading volume on Friday was still high and with plenty of buying still in evidence, couples with solid buying on the three day chart, this trend has a long way to run yet.
From a technical perspective the next area to breach is the highs of $1802 per ounce, last seen back in February, and if we see this level broken, then gold prices are likely to continue to rise further. Indeed with the three day trend now bullish, and the Hawkeye Heatmap also remaining green, this is also confirming the bullish picture for gold in the short to medium term. The US dollar index daily chart is also adding further momentum, and with sustained dollar weakness now likely as the QE3 program gathers pace, expect to see gold futures and the price of gold continue to rise and develop a longer term trend, possibly to break above $2000 per ounce in 2013.
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