Gold consolidates

Gold continues to consolidate in a narrow range. The bulls remain traumatised after the brutal sell-off from less than a fortnight ago. This saw gold drop $110 in a single session in a move which appeared to come out of nowhere. It has proved particularly damaging to bullish sentiment as it followed a 9% collapse in the first two weeks of November, just after gold hit an all-time high of $2,790. Gold had been recovering from the ‘Trump Slump’ quite steadily, so the $110 drop really was a kick in the teeth for bullish investors, many of whom had been looking forward to seeing gold top $3,000 before year-end. It certainly feels as if they will need considerably more patience, assuming gold can find its feet again. Yet it looks as if $2,600 is once again acting as support, and prices are having a go at breaking above $2,650. If they get above here and $2,650 holds as a base, then $2,700 becomes the next major target. Take that out, and a fresh record high beckons. $3,000 will take a bit longer.