Exploring the Holidays with Gold
In the realm of investments, gold has emerged as a star performer, showing promise in the recent weeks leading up to Christmas. With a net weekly gain of +1.5%, gold settled at 2065, prompting a closer look at historical patterns and potential scenarios.
A Historical Glimpse
Historically, when gold records a net gain exceeding +1.0% in the five days before Christmas, it sets the stage for a positive trajectory in the upcoming year. The post-Christmas “Average Maximum Gain” has been +23.9%, hinting at a potential rise to 2557 by the end of 2024 from the current 2065 level.
Gold Scoreboard’s Valuation
Questions about the Scoreboard’s past valuation peaks exceeding 4000 are addressed by considering Dollar debasement and the simultaneous increase in Gold supply. Recent data indicates a 6.1% reduction in the U.S. liquid money supply (“M2”) and a 2.2% increase in total Gold tonnage. While this temporarily impacts the Scoreboard’s valuation, historical patterns instill optimism for Gold’s price to reach prior high levels over time.
Weekly Trends and Momentum
Examining Gold’s weekly trends over the past year reveals a notable parabolic Long trend spanning 10 weeks, signaling upward momentum. Despite concerns about the recent bars being “too high” above the positive dashed trendline, historical context encourages a broader focus on Gold’s positive outlook into the coming year.
The Gift of Gold
As the holiday season unfolds, Gold’s pre-Christmas gain becomes a valuable gift for investors. The question of whether Gold will reach new all-time highs, with silver following suit, adds anticipation to the narrative. The weeks ahead may provide more clarity on these prospects.
Cheers to a Golden New Year
In conclusion, let’s approach 2024 with optimism for Gold’s trajectory. Historical patterns and current positive indicators suggest a promising journey for Gold in the months to come. As the year concludes, let’s savor the holiday spirit and keep an eye on the unfolding story of Gold in the ever-evolving financial landscape. Cheers to a prosperous and golden new year!
Read More – Gold Prices: Riding the Wave of Optimism Despite Economic Uncertainty