A well respected market sentiment service has gold bulls at 4% (on a 100% scale) and US dollar bulls at a 96% reading right now. If we look at the gold seasonality chart going back to the '70s the final 10 days of the year and the first 20 days of a new year offer a strong bullish tendency (the 2nd strongest 30 day period of the entire year).

From a chart vantage point gold is ugly, but it's also really oversold and there is a big band of support between $1080 and $1100. If we take the seasonality chart precisely to the day we would want to get long gold either at today's close or Monday.

As a short term trader I can't get long gold until the chart sets up better, however, a long term investor cannot do poorly over the long run adding to gold positions here.


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