Gold Drifting Towards Bottom of its Range
by Dan Norcini
Trader Dan Norcini
The Asian holiday period has closed down some of the big physical market buys that we normally see from that quarter of the globe. The result has been a lack of physical offtake which typically helps offset speculative selling over in the New York trading hours.
That has allowed bears to take gold lower after it failed to pushed past overhead resistance last week near the $1685- $1690 level. Gold is now retreating towards the bottom of its 6 week+ trading range near $1640 and below.
Bears will try to break through this support level as there are significant sell stops lurking down there that have them salivating. I would expect some Central Bank buying to emerge however should prices reach these levels. It was interesting to note a recent article detailing the extent of Russia’s gold buys. Gold is certainly moving from the West to the East.
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2013-02-11 11:01:45
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