Gold continues to hang out near this week's consolidation highs, which impressively leaves gold prices $19 above last week's risk on safe-haven washout low. In fact, one might have expected gold to have come in under pressure today following a massive US spending bill overnight as that should contribute to further reductions in global economic uncertainty and in turn that could discourage some gold longs.

While it is possible that the gold market might be holding up into the US impeachment vote, polling data show rising opposition to impeachment and the President's approval rating is rising and that could either reduce the margin of victory for the Democrats or simply reduce the importance of an actual impeachment.

While the market has not been negatively impacted by recent changes in ETF holdings it should be noted that gold exchange-traded funds saw 5,499 ounces liquidated yesterday and 836,953 ounces of silver ETFs liquidated.

However, the gold market should draft fresh optimism from overnight news from the IMF that Turkey and Kazakhstan central banks increased their gold reserves in November. Other central bank gold reserve builds included Indian October holdings, Mongolia November holdings, United Arab Emirates October holdings, and Serbian October holdings. The IMF also reported a reduction in the holdings by Columbia which was the first reduction since 2015.

In a minimally negative supply-side development, Tanzanian gold exports in the first 10 months of 2019 jumped by 48% which would be the equivalent of an additional flow of 115,000 ounces each month.

With the gold market standing up to a bounce in the dollar and even more importantly, standing up against very positive US scheduled data flows, the bull camp has ongoing resolve but it looks to continue to face headwinds from upbeat global sentiment.

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