1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
After two weeks of consolidation, the gold market experienced a strong surge on Monday (November 10), with a single-day increase of over $100, breaking through the key resistance level of $4,100. This suggests the recent adjustment phase may have concluded, and gold prices could resume their upward trend in the final weeks of the year.
At Monday’s close, the December gold futures contract on the COMEX rose sharply by $112, a gain of 2.79%, settling at $4,120.20 per ounce. Spot gold also showed robust performance, briefly breaking through the $4,100 level during the session and finally settling around $4,085, with a daily increase of 2.1%. This strong performance broke the stagnant pattern of the previous seven consecutive trading days.
From a technical perspective, this breakthrough holds significant signaling importance. After hitting a low of $3,901.90 on October 28, gold prices consistently found support above the critical 61.8% Fibonacci retracement level ($3,953). Following seven trading days of range-bound movement, Monday’s volume-backed rally effectively broke through the previous resistance area, confirming the end of the consolidation phase.
This rebound was primarily driven by two key factors. First, market expectations for another Fed rate cut in December have significantly strengthened. According to the CME FedWatch Tool, traders now see a 67% probability of a rate cut in December, rising to about 80% by January. This expectation stems from recently released employment and consumer data, both indicating signs of an economic slowdown, which bolstered the case for further central bank easing.
Meanwhile, market optimism has grown regarding the potential resolution of the longest government shutdown in U.S. history. Congress is expected to reach an agreement within the next week or two. This development would not only resume the release of key economic data but also refocus market attention on the deteriorating U.S. fiscal outlook.
Ole Hansen, Commodity Strategist at Saxo Bank, noted, “A reopening would restore data flow and revive expectations for a December rate cut, but more importantly, it shifts market focus back to the deteriorating U.S. fiscal outlook. Rising yields driven by fiscal anxiety, rather than economic strength, have historically been supportive for investment metals.”
Analysts believe that although gold prices corrected by about 6% after hitting a record high of $4,381 in mid-October, this consolidation is widely viewed as a healthy technical correction rather than a trend reversal. Considering that gold’s over 50% gain this year has been mainly driven by safe-haven demand, central bank purchases, and expectations for accommodative monetary policy, these fundamental factors remain intact.
Technically, Monday’s strong breakout, accompanied by increased trading volume, indicates that buying power has regained dominance. If the current market sentiment holds, gold prices could challenge or even exceed the recent record highs in the final weeks of 2025.
Combining the technical breakout with fundamental support, the consolidation phase around $4,000 is likely over. Driven by shifting Fed policy expectations, ongoing geopolitical uncertainties, and robust central bank buying demand, gold prices are expected to return to an upward trajectory, concluding an extraordinary year for gold in 2025.
