Fiscal Cliff Averted; What’s Next For Gold? – Technically Speaking w/ Jim Wyckoff

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With the U.S. fiscal cliff now avoided, we look at its potential impact on gold prices as we head into 2013, on this post-fiscal-cliff edition of “Technically Speaking” w/ Jim Wyckoff. Immediately following the announcement of a fiscal cliff agreement, the gold market initially saw a relief rally amid “risk-on” trading sentiment. Despite this brief recovery from recent lows, however, the gold and silver markets are in a consolidated phase on a near-term basis; furthermore, prices for Comex gold futures are still in a 3-month old downtrend, with bears having the slight, near-term technical advantage. Moving on from the fiscal cliff ordeal, investors are shifting focus to other headlines, with some turning their attention once more to the European Union’s sovereign debt crisis. The issue’s return to the spotlight follows the release of data suggesting that bank lending remains weak in the EU, underscoring the perception of a still weak financial sector. The EU debt crisis is something that Wyckoff continues to believe will be a slightly bullish underlying factor for gold. Despite the recent shift in focus away from the fiscal cliff ordeal, Wyckoff notes that the current agreement is temporary and fiscal cliff discussions will resurface to the forefront in coming months as lawmakers return to the issue to agree on anything pending or still undecided. Kitco News, Jan. 3, 2013.

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