After posting a high daily close of $2,800 on October 30, the December gold futures contract has come under heavy pressure.
Open interest has dropped along with price, indicating selling is coming from investors on both the investment and hedge fronts.
However, the long-term implications of the 2024 US presidential election could bring buyers back to the safe-haven gold market once the short-term downtrend has played out.
December Gold was under pressure again overnight through early Tuesday morning, dropping as much as $22.00 (0.8%). As of this writing the contract had trimmed its loss to $6.00, sitting at $2,611.70. There is a lot going on in the gold market these days, though I don’t think the market is as bearish as many others are saying. As I did in my discussion of the November US Federal Open Market Committee meeting, I’ll paraphrase Mark Twain in today’s discussion of gold, “The report of its (the gold market’s) death was an exaggeration”.
