Gold buyers test the waters of a technical break in final November push | investingLive

I’ve mentioned for a while now that gold has been trading within a flag/wedge pattern recently and the next trending move is likely to come from a break of that. And today, we’re starting to see buyers take some action in a push up to test waters above the technical pennant as seen below:

So, what does this all mean?

I would argue that the push higher would be more convincing had it not been the Thanksgiving holiday period. Liquidity conditions in most markets are sapped, so there might still be some lingering question marks on this move as well.

However, one can’t just simply ignore the technical picture either. But personally, I’d be more convinced on a break today if it comes with a close above $4,200 to break the mid-November high. Then, there would be a stronger case and argument for a resumption in the uptrend to target the October highs again.

Otherwise, it will be a bit tricky in trying to get a good sense of the move we’re seeing today. Not least with month-end flows also in the picture and just before we get to the new month next week. That being said, December has been a strong seasonal month for gold though just not quite the case in 2024 following a hot streak from February to October last year.