As we look towards the holiday period, gold and silver traders are not taking their foot off the pedal though. The precious metals continue to race higher in the new week with gold now racing to fresh record highs above $4,400. Relentless.
It has been mentioned countless times already that gold has a lot going for it heading into next year. But as it would seem, the bulls don’t want to wait in chasing yet another breakout to secure the next upside leg.
Gold is now surging past the October highs around $4,375-80 and a firm break above $4,400 will open up more room to the upside for the precious metal. The question is though, how much higher can gold go?
Plenty of analysts are of the view that we might see gold trade up to around $4,400 to $4,600 next year. And at this point, we’re already starting to hit part of that threshold. So, what’s next?
The technical picture is one that is taking a lot of importance at the moment. That being said, don’t discount the potential for market players to try and bake that in early.
A key challenge to the gold narrative will be “major central banks slowly starting to pivot from rate cuts and start talking about rate hikes once again down the road”. So, just be wary of that.
But for now at least, gold buyers will continue to keep the bullish momentum going. Although, thin liquidity conditions might exacerbate the gains we’re seeing here
