What will help gold get to $682?
December gold has held well in the key area of $580 to $590, resulting in the test of the $612 area. The pull from the front right now is $612 and then $682. Support is good at the recent low. The energy complex was a positive to gold early in the session prior to inventory figures. General commodities came off their lows, some with convincing action.
What gold needs to overcome $612 and move to $682 is the US dollar to decline below the Fibonacci support level just under the present level of trading.
Today's action in gold is being attributed to the early recovery in energy and generally firm commodity market, which certainly does not hurt. The price of gold needs a bit more help from the US dollar to get into gear firmly. That will come.
I spoke yesterday on Bloomberg with an emphasis on how the basic trend in the gold price is set via its currency relationship as an inverse to the US dollar. I also referred to the impact of slowing business conditions on tax revenues as the Formula describes.
Having lived and traded in the exact same circumstances, I have no doubt concerning the veracity of the Formula. I am convinced the US dollar is headed much lower albeit not without a battle royal at key levels.
With the dollar as the main driver, noise like the general commodity market action and oil will provide us with hair-raising ups and downs within the defined bull trend of this generation bull market.