Gold - The Bull Market Continues

Dec. 28, 2020 6:25 PM ETGold Spot Price (XAUUSD:CUR)BTC-USD, GBTC, GLD, IAU49 Comments
Florian Grummes profile picture
Florian Grummes


  • The 4-month correction in the precious metals sector is over.
  • Statistically, gold should have strong 1st quarter 2021.
  • Weekly gold chart now perfectly positioned for a multi-week to multi-months up wave.
  • Silver and bitcoin remain the dream-team for the accelerating crack-up boom.

After four corrective months and a final bloodbath towards the end of November, it looks as if the low is in and the precious metals sector should have a good start into the new year! Statistically, seasonality is very supportive in January and February.


On August 7th, the price of gold (XAUUSD:CUR) hit a new all-time high of US$2,075. The same was true for the gold ETFs GLD and IAU. At that time we warned of the temporary end of the gold rush. As a result, over the past four months, there has been tough and stretched correction, with several pullbacks towards the support zone between US$1,850 and US$1,865.

By November 9th, gold prices had just recovered back to US$1,965 when the final bloodbath phase began quite abruptly. In the following days, with their fifth attempt the bears were finally able to break through the aforementioned support zone, forcing the gold market into a small panic sell-off. After all, this sell-off ended on November 30th with an intraday double low at US$1,764.

Since 9th of November Mondays have become quite challenging for gold

Since then, there has been a clear turnaround over the last three weeks. Quickly, the bulls staged an initial recovery to US$1,876 before gold came back down to test US$1,820 one more time. Since the FED press conference on Wednesday 16th, gold bulls came roaring back pushing prices towards US$1,906 further upwards. At the start of last trading week, however, as it happened most Mondays in the last eight weeks, gold got strongly pushed lower after reaching new highs at US$1,905. The sharp slide saw gold tumbling down testing its solid support at US$1,855 once again. In the meantime, prices have recovered that vicious attack and are trading around US$1,875 trying to stage another attack towards US$1,900.

This article was written by

Florian Grummes profile picture
Florian Grummes is an independent financial analyst, advisor, consultant, trader & investor as well as an international speaker with more than 25 years of experience in financial markets. Via Midas Touch Consulting he is publishing weekly gold, silver, bitcoin & cryptocurrency analysis for his numerous international readers. Florian is well known for combining technical, fundamental and sentiment analysis into one often accurate conclusion about the markets.

Disclosure: I am/we are long XAUUSD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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