The month of December 2019 has been interesting for gold price watchers. Despite a rocky start, the momentum began to intensify near December 5th, before prices collapsed once again.
Investors and speculators expect the current new gold price uptrend to be nothing more than a dead cat bounce.
The Early December Gold Price Push
During the first three days of December, gold price watchers made a fair bit of money. With the value swinging between $1,452 and $1,464 multiple times, there was a minor spread for traders to take advantage of. It was seemingly the beginning of a downtrend, although the momentum shifted to the upside not that long after.
Between December 3rd and December 4th, the gold price spiked all the way to $1,483.5 without meeting much resistance. That powerful momentum could not be sustained for very long, however. It did not take long until market makers started driving the price down again until $1,460 was reached yesterday morning.
Given the current gold price market momentum, it seems as if a bounce will occur. The market has tried to push to $1,465 on two occasions now, yet the first attempt was rejected in a rather violent manner. This second push shows fewer signs of weakness early on, but it remains to be seen if it can be more successful. The market sentiment still leans toward selling despite this $3 gain.
None of the technical indicators offer much direction either. The moving average has not changed much. One notable development is the tightening of the Bollinger Bands, which could indicate a squeeze is forthcoming. Whether that momentum will be positive or negative, is anyone’s guess at this time.