Gold gains remain limited going into the year-end
Amid thinner market conditions, gold doesn't much to work with as the year winds down as buyers are finding it tough to build further momentum after a solid December.
For now, the $1,900 handle and the 100-day moving average (red line) is helping to put a lid on things and that is keeping price action in-check. Adding to that is daily resistance from the 61.8 retracement level @ $1,888.89.
That said, buyers are not quite losing steam just yet as well with the near-term chart showing that they are still looking poised to keep a more bullish bias:
In the past week or so, buyers have been showing resilience in defending the 200-hour moving average (blue line) and that sets a line in the sand if we are to see an early breakout in the new year for gold moving forward.
The January seasonal pattern is one that has delivered year after year after year, and provides a solid argument for gold to carry forward gains and the more bullish momentum seen this month - adding to the fundamental view of global central bank easing.
That said, baby steps for now. Breaching above $1,900 and the 100-day moving average will be the first key move before any further gains can be sustained.
