With spot gold hovering near record highs around $2,700 per ounce, conditions appear favorable for a broader gold equity rally in 2025. BMO expects investors to remain selective in the first half of the year, waiting for more clarity on cost management and capital allocation strategies.
Gold on the weekly chart is fighting a big battle at the 18 week moving average, this is going on for almost 2-months now. Bulls believe Trump's tariffs will bring in more inflation while bears believe we already had our rally.
Gold whilst seeking some charisma at least technically still looks to falter a bit; but fundamentally as the late great Richard Russell would remind us, there’s never a bad time to buy it.
Gold is passing this latest hawkish-Fed-surprise test with flying colors. Gold remained well above mid-November’s pullback low, and its monster upleg is alive and well.
You've got a pattern of a higher high and lower low. The market is fighting a dollar that's on a run to the upside and interest rates that are higher for longer and higher.
It's going to the 100-day average at $2642.5 and when you look even further in the market, if that gave ground, it can go to $2617, the lower Bollinger Band.
In recent decades, the Fed has a history of trying to support the stock market at the expense of “boots on the ground” Main Street inflation… which is very good news for gold.
