14th december Gold Trend Analysis

In last nights website update resistance was listed at 1644-1654 and the high so far today is 1642. Support was listed at 1609-1620 and 2nd tier is listed at 1552-1582 and the low so far today is 1599

Trades —



Since we’re using the MICRO contracts to establish a small position by averaging down a few of these contracts, I’m removing my STOP for the remainder of the day and will email if a total meltdown occurs. WE ARE FILLED WITH THE FIRST PORTION of the trade — and I have built up the equivalent of 1/2 of a normal position. Depending on the OUTCOME of today, will depend whether I add more to complete a normal position.



London Gold Fix $1,635.00 -$30.00

February gold was short term technically oversold after the sharp downside plunge in the prior two trading sessions and that might be part of the reason behind the bounce to 1641 last night. However, gold is favoring the weak side of the equation again today, as the fear of a prolonged Euro zone debt crisis remains in place.

Gold might also be seeing some pressure from news that a well known commodity analyst now appears to have turned patently bearish toward gold prices. More than likely, gold was probably undermined by news that an Italian 5 Year auction overnight posted a Euro era high, as that prompted some analysts to suggest that Italy won’t be able to sustain that level of borrowing costs without outside assistance.

The FOMC meeting yesterday also seems to have left the gold market weak, as the Fed wasn’t as close to offering additional assistance as was hoped earlier in the week. In fact, the Fed forward growth outlook appeared to be behind at least part of the declines in US equities yesterday and also perhaps it was also part of the reason for the slide in gold prices yesterday afternoon. A new drop for the move in February gold this morning, would seem to suggest that the bears still maintain control over gold prices, even if the market periodically needs to rebalance its charts. In looking forward, the gold trade might see strong demand for the 30 year bond supply later today as just another sign of ongoing concern toward the Euro zone and in some ways that action could also be seen as a sign that the US economy is headed toward further slowing. Equity markets in Asia were generally lower during overnight trading, while stocks in Europe showed more losers than winners at the start the Wednesday trade. Early indications are that the US markets are open with the obligatory 100 point Dow drop. The US Dollar remains strong against most of the major ‘s

Going to the chart

The long term gold chart is posted today. The 1552-1600 area is a very important price point. The 1580-1600 area is where the mid the long term channel line and a Gann angle line converge. The 1550-1560 area is where the long term adaptive moving average resides.

The market remains in a massive sell off as the liquidity crisis is taking a major bite out of the markets. The 1580-1600 area is major support for today — but the potentail for this selloff to continue is in play. With mid week Wednesday in play we’re looking for a low to develop near this area.



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"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."