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Gold prices today are down slightly 0.8%, but the precious metal has been showing some resilience lately in the face of several headwinds.
While the precious metal has given back about 14% since peaking in early August, it's still up about 12% since its bottom a year ago.
We've seen gold prices test near the $1,160 level twice this past week, and both times it bounced up from there.
Only hindsight will tell us for certain if this ends up being a new low. Meanwhile, there are macro, technical, and sentiment indicators that support that view.
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I think the price of gold will remain challenged in the near term, but within a matter of weeks we could see it resume its natural bull market stance.
The fundamentals remain conducive to higher gold prices, and the fundamentals always win out eventually. Patience will certainly be rewarded.
Before we get to my gold price outlook, here's how the metal has been trending this week…
Gold Prices Today Dip, Here's How They're Trending
Gold prices ended last week with a bit of strength. The yellow metal opened for trading on Friday, Dec. 2, at $1,170 and worked its way higher. By the close it had gotten a nice bump to finish the trading week at $1,177.
But Monday was different. Already late Sunday evening gold was seeing selling pressure. By Monday's open it was down $10 to $1,167. But it would rebound slightly to close at $1,170.
Tuesday was pretty uneventful. Gold opened at $1,172 and with a little downward pressure closed out at $1,169.
Wednesday brought a small reversal on the back of a weaker U.S. Dollar Index (DXY). Gold opened at $1,173, ran up midday to $1,178, but then caved to some selling pressure to close out at $1,173.
Thursday's renewed strength in the DXY pushed gold back down. Gold opened at $1,172 and by late afternoon had closed nearly flat at $1,170.
Gold prices today faced some similar selling pressure and were hovering around the $1,160 level in afternoon trading.
Now let's examine the factors acting on gold and where the price of gold is headed now…
Here's Where the Price of Gold Goes Now
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.