Gold fell 1.21% on Friday following a much stronger than expected November US non-farm payrolls report, ending the week at $1465 which is near the middle of its recent $1445-$1490 trading range. Sentiment has been generally pessimistic on gold for weeks as traders have used recent signs of renewed economic strength as a good excuse to reduce gold positions. 

Meanwhile, Goldman Sachs analysts still maintain a US$1600 price target for the yellow metal over 3/6/12 month time horizons. Goldman offered the following in an analyst note:

“Gold cannot fully replace government bonds in a portfolio, but the case to reallocate a portion of normal bond exposure to gold is as strong as ever....We still see upside in gold as late cycle concerns and heightened political uncertainty will likely support investment demand”

The correction since the September peak at $1565 has served to cool off overbought technicals and overbullish sentiment, and I think gold is set up nicely to rally into Q1 2020:

Gold (Daily - 5 Year)

The long term chart structure for gold is extremely healthy and the pullback since September looks like a classic bull flag pattern when viewed from a long term perspective. Seasonal tailwinds will also kick in next week and should be supportive of gold through late-February. 

From a support/resistance standpoint, the $1440-$1450 area represents important support with the next major resistance levels up at $1490 and then $1525. 

DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on for important risk disclosures. It’s your money and your responsibility.