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.
A week ago, Gold was languishing on a weekly basis, but on a daily basis ’twas set for some bounce. And that’s exactly how Gold ventured through this past week as priced by the ounce.
The battleground was at the 18-day average of closes. So I think it makes sense that traders are going to look on pullbacks for supporting the market, not to get back under the $2046.40 level, which was the low.
You have a higher high, you got up today to $2074.60, right now, you're back down from there already, $17. So, it was quite a slip back that you're seeing in the marketplace.
I outlined the $2010 gold price as a key buying area for gamblers, and the trade looks great so far. For investors, $1973 (basis is the cash price of gold) is the next big buy zone for the miners.
The market got over the 18-day average of closes and it's trying to stay over it, which would give the market an upside bias. The resistance is right above the market, coming in at $2052.20 on the upper Bollinger Band.
