Monthly Technical Reviews on Gold and Silver (December 2014)

GOLD (XAUUSD)
Dominant Bias: Bullish
According to the past historical seasonal trend and cycle, Gold was expected to be bullish around the last Thanksgiving holiday. Instead, Gold price consolidated and later dropped sharply last week – another example of the fact that past event is not indicative of future result. However, this does not mean Gold cannot trend higher during the next Thanksgiving Day. That being said, price has skyrocketed on Monday, December 1, 2014; leading to a quick Bullish Confirmation Pattern in the market. This new bullish bias may hold out till the end of the year, unless price goes below the accumulation territories at 1165.00 and 1160.00. Below those accumulation territories, the bias would turn bearish again, but above them, the bias remains bullish.

SILVER (XAGUSD)
Dominant Bias: Bullish
The fate of Gold is quite similar to the fate of Silver (it should be borne in mind that both precious metals are positively correlated in most cases). Silver consolidated for most of the last month and plummeted on Thursday and Friday of last week. On Monday, December 1, 2014, the market shot skywards by more than 1700 pips, from the low of 14.9950. The upwards sprint has been strong enough to establish the supremacy of the bulls: a situation that may hold true for the rest of the year. The only thing that can overturn the existing bias is an event in which price closes below the support levels at 15.6000 and 15.0000

Source: Tallinex.com

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