Gold To Close 2019 In Bullish Territory?

Throughout 2019, investors have found decent returns in the gold market. Prices put in a significant rally of more than $180.00 per ounce and tested the waters above the $1500.0 psyche level. Amid dovish FED policy, trade war uncertainty, and fears over slowing global economic growth, institutional capital holding bullion spiked to multi-year highs.

So, what’s next for gold? Will the recent stock market rally send the yellow metal into correction during early 2020? While only time will give us the answers to these two questions, gold is positioned to close the year in bullish territory.

Gold Remains In Long-Term Bullish Territory

Since the summertime rally from sub-$1300.0 to $1550.0+, the value of gold futures has slowly fallen. However, prices have repeatedly rejected support at the Macro Wave 38% Retracement (1465.0) and the long-term uptrend remains valid.

As the trading year winds down, there are two levels for February gold to be aware of:

• Resistance(1): Weekly SMA, $1511.9
• Support(1): 38% Retracement, $1465.0 

Overview: According to Predictit.org, the odds of Trump being impeached by the end of 2019 sit at 92%. Most media outlets are reporting that the House of Representatives is preparing to cast a vote in the coming days. Much like I suggested in the USD/JPY update from earlier, safe-havens may see considerable bids ahead of Friday’s close.

As long as February gold futures hold the line above $1465.0, then a long-side bias is warranted. However, if bullion enters a correction beneath this level ahead of 1 January, then it may be a rough Q1 2020 for the gold bugs.