Not much looks better than a crisply wrapped Christmas present with a gold bow on top. The real deal could be the bow on top for precious metal investors as 2023 comes to a close. AU tanked in mid-September and then rounded sharply starting in early August, rallying nearly $200.
A run like that tends to attract profit takers, especially when flirting with a multi-year high. Not surprisingly, sellers showed up and knocked Gold down to its 50-day moving average. Since, the precious metal regained some altitude and is once again threatening to head to prices not seen since COVID.
From a trading perspective, Gold is boxed in between $1940 on the bottom and $2020 on top. There are two possible options, Gold drops through the bottom, in which case the first sturdy support level is at $1880, in our technical opinion.
On the other hand, getting north of $2020 would likely send AU to $2100, and that’s where the real fun could begin. There is no resistance above $2100. There is no telling where Gold could go beyond that. Certainly, it’s been our experience that 25-year plus new highs are usually followed by robust action higher.
Of course, past performance is no guarantee of future performance. Swing trading anything is highly risky and only for the most aggressive investors who can afford to lose money in short timeframes.