The yellow metal is slap in the middle of the daily Ichimoku cloud between $1693 and $1760 with this week’s range so far squashed to $1720-36 and looking to go nowhere just now. Dips under 1700 towards the 100 day MA currently around 1685.50 are likely to prompt fresh demand as Eurozone uncertainty continues, oil prices rise and geopolitical M/E tensions build.
India , the world’s biggest buyer of Gold, has prompted action from the Reserve Bank of India (RBI) which has barred banks from extending loans to Gold purchasers in an attempt to limit the current speculation, but with analysts and investors all forecasting a surge next year the writing does appear to be on the wall for a surge in prices.
Gerry mentioned yesterday that legendary investor George Soros was joining the bull party by upping his holdings by 49% in Q3, and Paulson& Co have placed a $3.66 bln bet through the SPDR that the metal will rise, according to the SEC.
A latest Bloomberg poll of 16 analysts sees Gold rising in each quarter in 2013, averaging around $1925 an ounce
The recent rally is stumbling around the 50% retracement of the $1795-1674 (around 1735) which is the drop from early Oct to early Nov, but a break back up through the 61.8% retracement around $1749, should lead a charge back up towards $1795.
On an intraday basis $1730 is the near term resistance and the $1739.50, with initial support down at $1720 and then $1713.25.
XAU/USD’s presently trading around $1725.25
