Is Gold Bullish Again?

Gold last traded at $1,858 an ounce. Silver at $24.41 an ounce.

NEWS SUMMARY: Precious metal prices traded sharply higher Monday on safe-haven buying and a weaker dollar. U.S. stocks traded mostly lower as Covid-19 cases continued to rise and Wall Street searched for clues on additional fiscal aid.

Rosputnia/FX Empire--"Gold is a safety hedge in an uncertain world. There is no surprise we saw a massive sell-off with Covid vaccines being announced. Both vaccines are still waiting on final FDA approval. The real game-changer however could be Johnson & Johnson’s vaccine which only requires one shot and no special refrigeration outside that already widely required for current vaccines. Johnson & Johnson are expected to have interim data on its vaccine sometime in January which could mean emergency use authorization as soon as February.

So overall, the vaccine news is still very promising. However, the damage to the economy is already done and it will take years to recover after COVID. Despite massive stimulus key economic data is very weak. Last week gold rebuilt its correlation with the greenback. MA200 turned out to be a buyers zone....

Formation of higher low or kind of base formation is needed to have confidence in buying gold. However, we already can identify a bullish setup: Cycles point we are close to the bottom and new rally. The seasonal indicator is turning to the upside. The valuation model shows gold is undervalued...There are early signs gold is getting ready for the next wave up with another flagging formation....Lets not forget the huge government debt and potential asset bubble. Gold and Dollar are both means of safe haven."