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1st december Gold Trend Analysis

In last nights update on the website, gold resistance was listed at 1754-1761 and the high so far is 1754. Support was listed at 1727-1737 and the low so far today is 1743.

Trades

Gold — Same buy orders as on the website last night
Silver — Currently long at 32.02 basis March ——— use same stop as on the website. (Sold 1/2 of position yesterday at 32.92)

CME NEWS

London Gold Fix $1,750.00 +$46.00

While there doesn’t appear to be a full risk on vibe in place today, the gold trade looks to start the Thursday US session out with a favorable track. For the time being, the markets are generally confident that the EU/IMF scheme could keep Euro uncertainty contained. It also seems as if the concerted liquidity move by the central banks remains a supportive issue for gold and other commodity markets.

Gold was probably given a slight boost this morning by news that French and Spanish bond auctions were decently received, as that increases the potential that the markets will get to the European closes today without a fresh sell off event. With the markets also expecting generally positive US scheduled data flow from initial claims, ISM manufacturing 52.7 vs 51.8 and domestic auto sales up 6%, that might leave the gold bulls confident deep into the Thursday morning US trade. Traders should be on the look out for bigger than expected declines in either initial or ongoing claims today, as that news could take on added importance ahead of the monthly US payroll figures on Friday morning. ( THE number wasn’t quite as good as expected)

While gold hasn’t paid that much attention lately to demand side news, the trade might be lifted slightly by World Gold Council predictions of a 10% increase in Chinese gold demand this year. Part of the rise in Chinese gold demand however is offset by ideas that Chinese gold production is also expected to climb. A brokerage firm might have given gold prices some additional support overnight from a report that suggested gold could continue to reap fresh demand from investors that are unhappy with low yielding inflation adjusted instruments.

While equity markets in Asia were generally higher during overnight trading, stock indices in Europe are mixed this morning. US equity markets are open at unchanged levels. The US Dollar is weaker against most of the major’s this morning. The official Chinese Purchasing Managers index during November was 49.0, for a 1.4 decline from October’s levels. French Unemployment during the third quarter was 9.7%, in-line with forecasts. Euro zone manufacturing during November was at 46.4, in-line with expectations.

Going to the chart

The chart shows the trend change from last week remains in place. Gold has paused 24 hrs here at the 1750 area and while that is current resistance — trend favors that gold will move higher towards 1775-1800 and looks strong. We’re basically consolidating and we might remain like this into the jobs report on Friday Morn at 8:30 AM EST. WE CAN SEE THE ADAPTIVE moving averages are ready to cross to confirm this new uptrend and they are at FIB suppport levels. THAT AREA SHOULD BE STRONG SUPPORT and is in line with where we are trying to re-enter the market on the long side. While me may hang around this area for a bit more — in the 1735-1750 area —- the trend is favored HIGHER. RESISTANCE is 1754-1761 and support is 1733-1743 for the remainder of the day.

FRANCAIS ESPANOL ITALIANO CHINESE

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Thoughts
"For a mountaineer, the important things are the effort, the posture and the muscles. The rope that holds him serves no purpose when everything works but it gives him a sense of security. In the same way, all gold does is ensure confidence; it's a safe haven."