Gold Exploration Fell Slightly ln The Third Quarter

1. Gold Exploration Fell Slightly In The
Third Quarter

2. Points To Be Discussed Today:
• Gold Price Firmer As Risk Aversion Quickly
Resurfaces
• 24 Hour Spot Gold
• Gold Testing 1800, Looks Like A Selling
Opportunity.
• XAU/USD Grinds Support In Bear Flag
Formation

3. Gold Was Down
• Gold was down in terms of exploration
expenditure for the 3rd quarter. Iron ore
however made up ground by $23.8
million.
• Exploration for the yellow metal dropped
just $100,000 to $429.7 million over the
quarter, but it remained well above the
pack.

4. Gold Price Firmer As Risk Aversion
Quickly Resurfaces
• Gold and are higher in early U.S. trading
Tuesday, on safe-haven demand and more
short covering by futures traders.
• "Risk-off" trading and investing attitudes have
returned to the general marketplace after a
one-day respite Monday.
• February gold was last up $9.70 at $1,794.90
and March Comex.

5. Gold & U.S. Treasuries
• Gold and U.S. Treasuries are benefiting
Tuesday from safe-haven demand.
• In other overnight news, the Euro zone's
consumer price index for November came in
hot, at up 4.9% year-on-year, for the highest
reading in 30 years. Energy prices were up
27.4%, year-on-year.

6. 24 Hour Spot Gold

7. February Gold Futures Bulls
• Technically, February gold futures bulls have
the slight overall near-term technical
advantage.
• A two-month-old uptrend on the daily bar
chart is still alive, but just barely. Bulls' next
upside price objective is to produce a close
above solid resistance at last week's high of
$1,853.00.

8. Bears' Next Near-term Downside
• Bears' next near-term downside price
objective is pushing futures prices below solid
technical support at the November low of
$1,761.00. First resistance is seen at Monday's
high of $1,801.50 and then at $1,810.00.
• First support is seen at the overnight low of
$1,784.30 and then at last week's low of
$1,780.20. Wyckoff's Market Rating: 5.5

9. Gold Testing 1800, Looks Like A Selling
Opportunity
• As we approach the end of the year, gold,
silver, and platinum have work to do on the
downside.
• The dramatic drop last Friday, Monday and
Tuesday did a lot of technical damage to the
charts.
• Gold broke down from congestion and is now
below $1,800 based on March futures.

10. Gold Testing 1800, Looks Like A Selling
Opportunity - I
• The next support level for gold is $1,750; if
that fails, $1,700 is in play.
• If you have watched markets for any period of
time, everything is based on probability and
the most money is made trading with the
trend.
• The break from congestion was a possibility
even though the trend at the time was higher.

11. The Gold Bugs
• Here we go again.
• The gold bugs will be out touting how high
gold is going.
• As we have written in the past, there is no
doubt Gold, Silver and Platinum will be higher
in the future.
• However, for now, and today the trend is
lower and rallies should be sold.

12. A Trade Or An Investment
• You must recognize if you are making a trade or
an investment.
• The big problem is most can’t identify who they
are in the trading/investing world.
• As we have witnessed recently, people tend to
sell their strong holdings while holding onto the
garbage.
• Although we are big fans of physical metals and
will always be a buyer, the trends are lower and
should be sold

13. A Trade Or An Investment - I
• One of the hardest thing investors/traders
must deal with is taking a loss.
• As stated many times, proper investments
shouldn’t be sold and should not be
overextended in monies used.
• Traders using level must take losses when they
come without fail.

14. The Trend Changes
• Until the trend changes, gold, silver and
platinum are headed south, a great
opportunity exists for those who can separate
opinion from fact.
• Too many are so opinionated they can’t see
the trend through their opinions.
• We are short and will be until the trend
changes; it’s that simple

15. XAU/USD Grinds Support In Bear Flag
Formation
• Gold prices have been relatively calm over the
past few trading days, all factors considered.
• Ahead of that, however, was a massive move
of weakness, fresh on the heels of Jerome
Powell’s re-nomination to head the FOMC.
• The analysis contained in article relies
on price action and chart formations.

16. XAU/USD Grinds Support In Bear Flag
Formation - I
• It’s been a pretty eventful past few days in
markets but, you might not know that by
looking at Gold.
• With a new covid variant getting priced-in last
week, bringing with it a massive dose of
uncertainty, both stocks and the US Dollar put
in a quick but sizable pullback.

17. XAU/USD Grinds Support In Bear Flag
Formation - II
• US Treasury yields similarly fell and those
remain on their back foot today, which
has helped stocks to recover.
• In Gold, however, prices are sitting
on trendline support as part of a
recently-built bear flag formation.

18. Gold Levels
• Should the trendline in gold begin to give way,
there’s a nearby Fibonacci level around 1771
that’s of interest, but the prior price swing at
1759 is more interesting, and a breach below that
opens the door for a move back towards the
October low around 1721.
• The big price level on Gold is 1680 – that’s the
2021 low and it’s already been tested three
different times. If the bear flag resolves, that’s
the price worthy of focus.

19. Gold Levels - I
• On the long side – there is some potential here, as
well. As we’ve covered before, negative real rates are
generally positive for Gold.
• So when inflation or inflation expectations are running
higher but rates or rate expectations are not, Gold can
shine.
• This is what had allowed for the prior bullish breakout,
which showed up shortly after the 6.2% inflation print.
• That move has been mostly priced-out at this point
with the bulk of the theme building early last week on
news of Chair Powell’s re-nomination.

20. Gold Exploration Fell Slightly In The
Third Quarter

21. Thanks for listening
Gold Exploration Fell Slightly In The
Third Quarter