This is the moment of truth for gold. I like the setup here, as I always do on December seasonals. In addition, the Fed is going to pivot dovishly and the dollar looks out-of-gas.
Gold is now up $35 on the day at $2071. I don’t get the sense that gold is crowded even as it threatens all time highs, there could be some FOMO on a breakout.
I would expect some short-term profit taking here as a big level was touched but if it can hold $2050, then I think it won’t be long before the bulls go for a true breakout.
This article was written by Adam Button at www.forexlive.com.