December Gold (GCZ7)

As long as 750 holds on a closing basis for GCZ/ZGZ, then gold should continue to move higher now. The coming months look to be much more exciting i believe. The pullbacks so far in gold continue to be bot aggressively...
 

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I started a new thread for 'December Silver (SIZ)'. this where the action is going to be from this point forward imo...

Cash gold will likely break over 770 once the USDX cracks below 77. With Crude prices trading again right up near 90, I just can't see much in the way until 800 soon. 745-750 appears to be solid support now as well.
 
I wonder where it hits the point that profit takers outnumber buyers?

If the Fed cuts rates next week, I can't see the dollar getting a big rally, so that would imply gold goes still higher for now.

Maybe we need to watch for the people lined up to sell their old gold jewelery like in 1980?
 
Next upside target in gold is the all-time record high price of $850 on the cash market (January 1980). The contract high achieved on the April Gold contract in 1980 was $895.00 so this is the number to beat imo. Remember that gold priced in inflation adjusted terms should be fairly priced at around $2200/oz. so there is some catching up to do...
 
Yes, I agree there. I'm wondering what happens this coming week after the Fed meeting:

Fed raises rates = gold tanks to low $700's
Fed stays pat = gold holds or pulls back
Fed cuts 1/4 = gold to $800, maybe test $850
Fed cuts 1/2 = gold goes over $850

those are my guesses for now...
 
Quote from SethArb:

some of the 1981 gold futures contracts show contract highs
of over $950 and even $1000 during that 1980 spike high
More...

Right.. So Feb Gold 1980 was the active contract and April Gold was the front month. I would consider these two contracts to signify where the open interest was the largest when cash gold actually hit $850.
 
There exists the possibility that gold could push back a bit to consolidate the gains made in the past 5 days. 770 would present near term support as a backtest of this area represents prior resistance. Perhaps there will be a bit of DX short covering prior to the FOMC on 10/31. This would likely force gold lower but not by much. This could present another opportunity to add or to get on board imo...
 
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