Gold has managed to recover some of the ground lost last week in the sharp drop to the lowest levels seen since Jan 2011 but continues to struggle at the 200 week moving average seen around the $1437.5 level. Last week’s close below the 200-WMA was the first since late 2001 which gives you some idea of the significance of this indicator. Another weekly close below favours another dip towards the $1305-25 region while a close back above hints at a move back towards the Apr 15 highs at $1495.
Overall a $1310-1525 range is expected to define in the coming weeks.
