Gold - Recovery Ahead

Gold last traded at $1,797 an ounce. Silver at $22.42 an ounce.

NEWS SUMMARY: Precious metal prices rose Thursday on safe-haven buying and a weaker dollar. U.S. stocks traded mixed as investors digested the Fed's signal that it would be aggressive on tapering and a forecast of three interest rate hikes in 2022.

Seeking Alpha--"The gold market is nearing the end of a difficult and very challenging year. Most precious metal investors must have been severely disappointed....

Physical investors can easily sit through such a sideways shuffling. But leveraged traders had nothing to laugh about....

Despite the 15-month correction, gold has been able to easily hold above the uptrend channel, which goes back to December 2015. The steeper uptrend channel that began in the summer of 2018 is also still intact ....

In summary, the chances of a renewed recovery starting in the near future predominate on the daily chart. In the first step, such a bounce could run to around US$1,815.

Secondly, the bulls would then have to clear the downtrend-line, which would release further upward potential towards US$1,830 and US$1,870. The very best case scenario might see gold being able to rise to the psychological number of US$1,900 in the next two to four months....

Following the FOMC interest rate decision and the FOMC press conference, the start of a recovery would be extremely typical. Statistically, gold prices usually finish the last two weeks of the year with higher prices, because the trading volume in the western world is very low over the holidays.

Overall, the seasonal component turns 'very bullish' in a few days, supporting precious metal prices from mid-December onwards. Typically, January, in particular, is a very positive month for gold, but the favorable seasonal period lasts until the end of February."