Could this be the time to buy Gold? Technically, there is a consolidation and oversold conditions. The Gold (December) may be in a potential bullish pattern.
Weekly Gold Digger
The Gold market has all the characteristics of a potential breakout, yet it could be short-lived in light of the Fed’s affinity for speaking about the economy.
Attempting to foresee the world economic outlook for the future may be difficult, yet we can utilize knowledge of past events and economic conditions to anticipate potential scenarios.
In 2014, the total demand for Gold amounted to 3,924 tons. Consumption of Gold was also down. India purchased 843 tons and China purchased 814 tons according to the World Gold Council.
The February Gold managed to get a little support from the drop in the Indexes and the US Dollar. The safe-haven features of the Gold are still intact.
The Gold rally on Nov 14 may have looked inviting to Gold bugs, but may be attributed to profit taking!
The Gold may decrease in next week’s action if the Fed hold its course and tapers as anticipated for the end of quantitative easing.
The fear and anxiety created in the global marketplace this week was well received in the Gold as it moved into a buy mode posture.
The US Dollar has been relentless in pressuring the global markets! The strong dollar makes US goods more expensive and pins the other currencies and tangible commodities such as Gold.
The Gold market is just bearing the brunt of a strong US Dollar and monetary policy that has been interpreted as perhaps a bit hawkish. The US Fed tapering is pretty much set for an October expiration but the tightening is regarded as data dependent.