On Wednesday, something very interesting happened in gold. First, it made a new five-month low, as it has done every day this week. Then the monthly ADP national employment report for November came in at a strong 215,000 rise in workers. That handily beat market expectations of a rise of around 170,000. That should have sent gold lower. But you know what gold did? Gold went higher.
When something goes up on bearish news, that's a pretty bullish sign.
However, we have to keep this in context. The damage in gold is more like carnage. It has a lot of work to do. For starters, I'd like to see spot gold close above last week's close of 1,251.40.
Then we'd have two bullish weeks in a row.
If that happens, the bears will likely start to cover. Gold has two more trading days to do it. Will it happen? Wait and see.