There is gold seasonal tailwind in December-January and now he has a basic one.
China's central bank resumed buying gold for the first time in six months, weekend data showed. China had halted purchases in May in a move that signaled price volatility above $2400/oz. But it seems they have had a change of heart and are now buying above $2600/oz.
As I noted over the weekend, when China stopped buying it led to a decline of $50 initially and $100 in the following days. So far, we have seen a $40 climb to $2673.
Technically, how does it look? The climb above the December highs is good news and a sign that we could see a retest of the late November high of $2721. A dovish central bank decision between now and Christmas would certainly help and for that to happen in the US, we will need the CPI report online on Wednesday.
Daily gold record
Silver, meanwhile, is outperforming with a 3.9% gain compared to the 1.5% increase in gold. Silver is at its best levels since early November after the bulls bought it twice to $30. today stands at 1.20 $.
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