Gold Even Higher in December? (NYSE: AUY), (NYSE: ABX), (NYSE: GG), (NYSE: GLD)

Even after the amazing rally gold has been showing, many people are expecting it higher for December.  That will helps the likes of Yamana Gold Inc. (USA) (NYSE:AUY), Barrick Gold Corporation (USA) (NYSE:ABX), Goldcorp Inc. (USA) (NYSE:GG) and SPDR Gold Trust (ETF) (NYSE:GLD).  There are many arguments for (and a few against) going higher, but let’ examine one that seems to make some good sense for the short term.

Lance Lewis, a writer over at Minyanville, provides some pretty good insight as to why he believes gold will go higher in December.  One of his points is that gold is the only true hard currency that cannot be debased in an attempt to prop up the dollar.  Meaning, people are beginning to recognize that gold cannot be devalued as monetary system around the dollar implodes.

Another interesting point that Lance makes is that he recognizes a pattern in gold the past few months.  He speculates that at the beginning of the month, people are making their monthly contribution to their accounts and pouring that money into gold.  As such, there tends to be a spike in the gold prices with all the demand buying and then there are minor corrections mid-month.  The strange thing that Lewis points out is that there was no mid-month correction in November, leaving it to stand that the same thing may happen in December.

Read his whole story and view the accompanying charts here.