Gold Futures Looking To Close 2020 In Bullish Territory

Now trading at a shade under $1900.0 per ounce, it has been a big 2020 for gold futures. Prices have rallied furiously throughout the COVID-19 pandemic and the U.S. presidential election. With a new year dawning and new administration apparently headed into the White House, bullion continues to hold its own.

Today, February gold futures have traded largely sideways, up about 0.5% on the session. Aside from the stimulus check battle, there isn’t a whole lot on the financial calendar. Here’s a quick look at the day’s economic releases:

Event                                                                      Actual                 Projected      Previous

Chicago Purchasing Managers’ Index (Dec.)        59.5                      57.0                    58.2

Pending Home Sales (MoM, Nov.)                        -2.6%                    0.0%                 -0.9%

Pending Home Sale (YoY, Nov.)                            16.4%                     NA                    20.2%

Once again, Pending Home Sales are getting blasted, down both monthly and yearly. However, prices remain high, and aggregate real estate demand is strong. Ultimately, today’s numbers are largely a function of the North American winter months and lagging home supplies.

For February gold futures, the long-term outlook is bullish. A steeply-devalued USD is propping up commodity prices, which is helping bullion. If you factor in the emergence of a new strain of COVID-19, then there are very few reasons to dump the yellow metal ahead of 2021.

Gold Futures Look To End The Year Strong

Since the yearly highs posted back in July, February gold futures have churned south. Nonetheless, the COVID-19 uptrend remains intact as prices are holding firm near 1900.0.

As we head toward 2021, here are a few levels to remember:

• Resistance: 2020’s High, 2099.2
• Support: 50% Retracement 2020 Range, 1780.5
• Support: 2020’s Low, 1461.7

Overview: With the end of 2020 only days away, one has to wonder how bullion will close the year. However, one thing is for sure ― the table is set for a big, bullish 2021 for gold futures.