This Week Highlight - Gold Outlook for December, 2020

On the final month of every year, the market activity always stops after 20th of December and becomes quiet till early January. Of course, this is due to the long holiday season of Christmas!

This year, we expect no exception from the past. However, the possibility of seeing the historical record highs in Dow Jones, S&P500 and Nasdaq100 is too obvious to be true this month while traders and investors celebrate their ways to the year-end book close.

While all U.S. stock indexes dance with the rising flag and coincides with the final month of the year, do observe the last FOMC meeting of the year on 15-16 December. Regardless of what the FED policymakers decide in their policy, the anticipated outcome will usually "materialize" in January.

Looking at the Gold month-chart, there could be another possibility of seeing a bottom at USD1750 /oz in December or January. This eventual bottom might be historical and never be seen again once it bounces inversely to Dollar collapse. In many past snippets, we mentioned that the surge of precious metals and general commodity prices in 2020 and 2021is directly due to the rapid devaluation of Dollar.

Hence, be patient to wait and capture your fish at the bottom of the net. This December, overall prices in Gold market will swing from USD1750 - USD1850 /oz in mixed trading. Silver looks topish at current USD24.00 /oz and prone to dive at USD20.00 /oz in the most unexpected situation.

In December, U.S. stocks will look good and lure many innocent buyers to establish their new positions. Once they begin to plunge in early 2021, whole lot of global fund will rush into Gold and crypto assets for safe haven. When the new stimulus is announced by U.S. Congress, the stock indexes may rise but only for a short-term bull. Watch your alert level and find a quick exit in all the stock positions. Stay safe and healthy.

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