Home » Gold futures trading » Gold futures – bull trend continues

Gold futures – bull trend continues

December gold futures moved higher once again on Friday, ending the week with a narrow spread up candle which breached the $1300 per ounce price level during the day, only to pull back and closed marginally below this psychological level, at $1299 per ounce. The strong trend is fully supported by all three moving averages on the daily chart with all three pointing sharply higher, and with a strong platform of support in place at the $1250 per ounce price level, this offers a second level of defence in the event of any temporary pull back from the current strong trend.

The fundamental environment is also acting as a key driver to the current trend, with US economic policy, currency intervention, and the prospects of inflation or deflation all helping to drive investors to the ulitmmate safe haven asset in these uncertain times. Added to this, comes the recent news that many central banks are no longer net sellers of their gold assets, preferring to preserve their reserves. As such, and given the longer term uncertainty for global growth, the technical picture for gold futures remains extremely strong, with the current bull trend looking set to run for some time, as we set new record highs on a daily basis for gold futures.