Gold prices are still in a range. This range should be broken in the next two weeks. Spot gold has to trade over $2020.00 to be in an intraday bullish zone and rise to $2042.90 and $2059.60.
I'm arguing that support is at the $2047 level. So if the bulls are going to buy, I think that's where they'll buy – they'll put stops under the $2030.80 area but that's an awful lot of risk.
Gold bugs who over-allocated to the miners (and did it on price rallies) should shift their focus to increasing their share of gold bullion and buy gold if it trades at or near $1973.
In terms of momentum, we've had a correction that's gone flat so I'm back in the friendly camp until you take out the lows right through here – and specifically that low would be: $2030.80.
China taking urgent steps to prevent short selling in Chinese stocks should be a bullish sign for copper, zinc, aluminium, and silver. Gold rose as the price did not fall below $2020.
I can see the action here isn't friendly; the market's got a pattern of a higher high and a lower low. It's trying to fight a battle between the 18-day average which it gave up today. Finally.
Consumption of gold increased by about 3% to 4,899 tons last year, backed by buying in the over-the-counter market and by central banks worldwide, especially in China and Poland.
Oil in particular tanked while gold held together even as the other precious metals led by silver faltered. Both gold and oil continue to trace out potential bottoms.
It will be difficult for spot gold to break $2100 before the end of the month. Consolidation period can continue for a much longer period than most of us expect.
