We have been sitting on the sidelines of the gold market for some time now, waiting for the market to show its hand.
We have two potential support areas targeted, one, at $1243 was achieved today. The other is $1215 based on symmetry moves and other calculations. When one considers GDX, we are now within 50 cents of the low back in July. So support should appear soon. Further the FOMC interest rate decision to raise rates on Wednesday is a foregone conclusion.
In our view, little is now in the way of an increase in both gold metal and stock prices for the near term. A rate hike in March 2018 is by no means baked into the market cake. So it is reasonable to anticipate some weeks of strength particularly with strong seasonality in gold in December and January.
A potential black swan flying around is the matter of Bitcoin. While the cryptocurrency appears to take on a certain safe haven function, it's parabolic move leaves us confident the quasicurrency will collapse in the relatively near term. One must realize there is no way to short crypto at the moment, so no way for Central Banks to
Once the Bitcoin threat is quashed by Central Banks, we expect much stronger interest in the gold market to emerge.