Reminder: U.S. Markets close at 1:00 PM today and won’t reopen until Monday, December 28, 2020.
Because Markets are closed Friday for Christmas, tonight’s report will act as the Weekend Newsletter.
The stimulus saga continues. President Trump is asking for $2000 payments to individuals versus $600. Congress could amend the bill and vote as soon as today. The much larger payments of $2000 per individual and $4000 per couple, if agreed, could be the catalyst gold needs to breakout.
The primary levels in gold remain $1912 and $1859. Gold (currently $1878) is near the middle of that range and go either way.
GOLD 4-HOUR CHART: The 4-hour gold futures chart continues to consolidate after Monday’s wild swing. Prices are caught between converging trendlines. A break and close above $1912 would register a breakout and new multi-month cycle advance. Whereas finishing below $1859 would signal a near-term breakdown and restore the chances for a trip towards the lower trend channel nearing $1750.