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Gold futures continue bullish trend

December gold futures bounced back on Friday, closing the futures trading session with a narrow spread up candle with the commodity briefly touching $1350.80 per ounce, before closing marginally lower at $1347.90 per ounce on the day. Despite Thursday’s volatile price action, and subsequent pullback, the trend for gold remains firmly bullish, with the 9 day moving average once again playing a pivotal role in trading towards the end of the week, firstly on Thursday as it provided a platform of support during the move lower, and then on Friday to the low of the day. On both occasions this has given us a strong signal that the upwards trend for gold remains firmly in place, and with both the 14 day and 40 day moving averages also pointing sharply higher, we should see further gains this week as we set new record highs for the precious metal.

From a fundamental perspective we do have a curious and conflicting picture at present, with commodities, bonds and equities all trending sharply higher, something which rarely happens and all as a result of the FED policy for further quantitative easing measures. Friday’s dreadful NFP data will no doubt speed this policy further, which should provide further momentum to the move higher for both gold and silver, as the US dollar descends lower to plumb new depths!