Gold banks modest gains during comatose trading day; Where are the Gold bugs?

Today’s trading day lacked the excitement from a limited economic calendar that had little to no catalysts lined up. Therefore, Gold walked alone as the metal is left outside the spotlight, not before banking +12.13/oz., at the time of writing, which equals a modest +1.03%.

Classic Supply and Demand realities

Frank Holmes, CEO and Chief Investment Officer at U.S. Global Investors, noted in a recent interview Mike Gleason from Money Metals Exchange (Money Metals Podcast) when asked about the impact on prices due dwindling supplies,” I think I wrote a book and gave some charts in my recent Frank Talk. It looks like they're calling 2019 as a peak for the gold because there's been a massive cut back in the past five years of exploration. Each year it just makes it more difficult to have a discovery and bring something on stream. The process of discovery to getting an ounce of gold out of the group, which use to take eight years is now pushing 20 years. I think this is a new reality and it's good to have clean air and clean water, but it has become very extremely difficult to explore, to develop, and to maintain gold production.

Gold Technical Levels

Analyst Carol Harmer at Charmer Trading Academy noted, "Our daily pivot point is at 1175 today and currently we are trading above it. There is scope to trade higher to the 38.2 Fib level of 1187, but we must watch this carefully. If we break below 1170, there is room to go back to the 23.6 fib @ 1162. Now, this ties in with the S2 at the same level and support line support, so that would be a good place to re-enter Gold looking for a resumption of this corrective phase we have seen since the fall of Nov and Dec last year.”

“Daily charts look a bit overextended on the topside and therefore we are looking for the market to have possibly one more thrust higher to sniff this 1187 resistance and then fall. Now obviously if the market makes a break above 1193 then it will be given another boost, and we should be able to trade to the 1199/1204 resistance, but being overbought will not help this, and at some time this week we should see the market fall to ease this overbought scenario.”

 Frank Holmes: Gold Rally Extremely Likely in January and February