A Move That Deserves Comment
From The Maven Letter: 8 December 2023
Gold has certainly made some attention-grabbing moves in the last two weeks!
Most attention-grabbing were its drive up through $2000 per oz. two weeks ago and then its spike to a new all-time high of $2140, after which it immediately dropped $100. As all the coverage suggests these two weeks have been frenetic…though really the yellow metal has been laying the groundwork for those moves for some time.
After bottoming at $1820 in early October the yellow metal marched higher, touching $2000 by the end of the month. After relinquishing some of those gains to hit $1938 on November 10th, gold ground its way higher for two weeks to close at $1994 on November 23.
That 6-week setup meant that when it moved above $2000 per oz. and broke that round-number resistance, it had a free path higher: by November 28 it was at $2044. It traded at that level for a few days…and then came the intensity of December 3rd and 4th when gold spiked from $2070 as high as $2138 before heading quickly back down to $2020.
The Sunday spike was short covering. This happens with regularity in markets
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