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Gold future prices – bullish trend remains unbroken

The December gold futures contract ended the trading session yesterday marginally lower with a narrow spread down candle on the daily chart, but one which provided little evidence of any slow down just yet in the bullish momentum for the commodity, which has picked up again in early trading this morning, to move to re-test the high of last week and to trade at $1359.70 per ounce at the time of writing. The commodities markets in general, and metals such as gold and silver were given a further boost last night with the release of the FED minutes of the recent meeting, which provided further evidence ( if any were needed) that the policy of quantitative easing would be implemented in the next few weeks. As such, this is likely to provide a further injection of momentum into the currenct bullish rally for both gold and silver, with Goldmand Sachs now forecasting a high for the commodity early next year of $1650 per ounce. My own view is slightly less bullish than this, at a more modest $1450 per ounce, but I am always prepared to be proved wrong by the mighty and much loved GS!

The technical picture for gold futures remains firmly bullish, with all three moving averages pointing sharply higher, and with no evidence of any imminemt pullback and a broadly supportive outlook from the fundamentals, the long term picture remains heavily bullish for the precious metal as investors continue to hoard their cash away from paper currency based assets.