GOLD TREND June 11 - 15, 2012

 June 15
 11.00 AM GMT

 Long Term=Up (major resistance 1767-1804 needs to be exceeded on a monthly close)
Medium Term=BEARISH (Major Resistance 1767 Monthly Close) Technically in bearish mode.
Intermediate Term= Bullish – the intermediate term moving averages have crossed but price needs to hold last week’s low at a minimum to keep the upside potential.
Short Term= Neutral to slightly bullish

Support and Resistance for Friday
Initial Resistance for 1627-1633  and 2nd tier 1645-1655
Initial Support 1607-1611 and 2nd tier 1595-1598.

 What Next?

The chop continues and each day brings a sell off that is reversed and price moves higher.  The two key points are the 1625-1632 area on the hourly chart and the 1655-1660 area.  The GLD chart favors the move to 1655-1660 once the resistance line on the hourly chart that has held all the highs this week gives way.  We’ve continued to say all week that further price highs in this chop can’t be excluded and that is also the case for Friday.  Last night we discussed that if we made a slight new high and didn’t get above 1632 and turned lower to break the previous day’s low the odds would favor the peak for the week would be in play.  We got the 1629 high and then a 20 dollar drop but prices held support and then moved right back up to the resistance line before the Thursday close.  Thursday was our most likely day for the pullback to begin  and the 19 dollar drop was right in line with the outlook.   But the reversal back up to end the day once again leaves the upside potential on Friday at a high level. The chop and overlap pattern continues but so far price each price break lower finds support and reverses.  This gives Friday the potential to now break higher if we move above 1633 and if that develops, it will favor 1655-1660.  Short term cycles are due to turn on the 19th (plus or minus 72 hours) but even that is questionable with the cycle inversion still in play.

Bottom line

the price patterns still look like they are choppy and overlapping and that has to keep the guard up with caution.  However, the closes now above the 50 day average keeps adding upside potential.  If we do move above 1633, the chop will probably cease and a fast move to 1655 will most likely develop.

Thus as skeptical as we are, as long as we’re above the moving averages on our price charts we’re leery about calling for lower price. The blue line at 1626-1630 has provided the resistance for the week so far but going into Friday, gold has yet to turn bearish. The blue line is resistance at 1629-1633, but as long as we keep going higher and  the intermediate term trend moving averages on GLD are up and price is above them, the potential  to break above 1633 on Friday is still in play.  We gave the bulls a slight advantage on Thursday and as long as we are above 1615, we have to favor the same  for Friday.

We think it comes down to the 1633 area and that blue resistance line on the first chart.  With 6 or 7 tests of that line, it won’t hold down gold much longer.  It’s possible we remain in a tight range on Friday and the gold’s option to move higher or lower remain in place.  Above 1633 and a sharp move to 1655 will be favored.   Options expiration on the Stock market is this week and that means GLD as well. I think it all comes down to that wedge on the first chart.

With everything said and done, we think the pressure for the fed and  the ECB is so great that they will not let this fail.  What other choice do they have?  None as we see it.

June 14

   4.00 PM GMT

The gold market has remained in favor overnight despite press coverage that suggested  physical demand for gold in India and China has generally remained weak. (whether that data is correct or not is questionable)  The gold market also had to discount news overnight of a minor increase in a 2012 gold production forecast from a Russian miner. The bulls in gold  also overcame a negative Indian gold import forecast overnight and that would seem to suggest that supply side news items aren't currently carrying much weight. With rising Euro zone periphery debt yields again overnight and a downgrade of Spanish interest overnight the gold market has seen flight to quality and easing expectations brought forth into another US trading session.

However, gold might have seen only a slight lift off a brokerage firm projection of $2,000 gold within the coming 2 years. Apparently gold saw some lift from weak US retail sales figures yesterday morning and  the same type of action again today occured in the wake of the initial claims and CPI figures this morning that continues to suggest weak economic data.

The gold market will also continue to draft some action off the build up to next week's US FOMC meeting. There will also be a US Presidential speech today and that might prompt some reaction in gold prices, especially if the US President indirectly pushes the Fed for additional easing measures.

 Chinese stocks were weaker overnight, as the fear of more credit rating downgrades in Europe and the looming Greek election have left Chinese investors back on their heels. European equities were also weaker in the face of another rise in Italian bond yields and because of swirling talk of a possible Greek exit. Even economic forecasts from the ECB overnight seemed to undermine sentiment this morning, as they predicted uncertainty will continue to weigh on long term growth expectations. Early US equity market action was mixed, with the market clearly off balance from the late afternoon washout in US equities yesterday and also because of the flow of negative headlines from the Euro zone overnight.

Gold Chart 

Gold has hit the resistance line again on Thursday that is most favored to be the high for this week. The one thing that is a strong consideration is the Greek elections this weekend.  One firm has already decided to close trading on Sunday in lieu of potential big volatile swings due to the Election.  Worries of US growth and is also putting pressure on markets. If anti-bailout Government is elected, it will put a lot of uncertainty in markets. Everything hinges on Greek going into the next week.

The choppy action in gold favors today’s move is the high for the week, but the uncertainty coming into Sunday night has a lot of players on the sidelines.

In summary, today favors the high is in place for gold but be careful. If a sell off is to occur it should be in this area. Support is the 1609 area first and then 1595.

  5.00 AM GMT   

Long Term=Up (major resistance 1767-1804 needs to be exceeded on a monthly close)
Medium Term=BEARISH (Major Resistance 1767 Monthly Close) Technically in bearish mode.
Intermediate Term= Bullish – the intermediate term moving averages have crossed but price needs to hold last week’s low at a minimum to keep the upside potential.
Short Term= Neutral to slightly bullish

Support and Resistance for Thursday
Initial Resistance for 1625--1627 and 2nd tier 1635-1643
Initial Support 1600-1607 and 2nd tier 1590-1595.

What Next?

The chop continues and each day brings a new challenge for price direction.  We hit some key resistance on Wednesday and there is a small pullback in play from those highs but nothing definitive yet.  Signals are mixed and we can’t rule out another price push higher to the resistance areas on Thursday.  If we make a slight new high above the 1st target channel line on the hourly chart , and we don’t get above 1632, but instead turn lower, and break the Thursday low, odds will favor the peak for the week is in play.  With the Greek election on the 19th and the continuing debt situation, is possible we’ll remain choppy like this into Friday.  Thursday is the most likely day for a pullback to begin that lasts for the remainder of the week.  Any move above 1632 will negate that outlook and favor 1655 as the next target.

Bottom line

weak retail sales did in fact move gold higher as gold has taken a liking to weak economic data.
The price patterns still look like they are choppy and overlapping and that has to keep the guard up with caution.  If gold can remain above the 50 day it will add more steam to the upside.
In summary, if the price patterns weren’t so choppy, we’d be favoring higher prices and we’d be a lot more bullish.  But price does keep moving higher during this chop and above the moving averages. Thus as skeptical as we are, as long as we’re above the moving averages on our price charts we’re leery about calling for lower price. The blue line at 1626-1630 has provided the resistance for the week so far but going into Thursday, gold has yet to turn bearish. The blue line is resistance at 1626-1630 and while that’s an odds favored high for this week, as long as we keep going higher and that the intermediate term trend moving averages are up and price is above them, the potential to move higher into Thursday is still in play. It looks like the battle for the 50 day average at 1616 is where the bulls are trying to hold prices at.  As much as we’re mixed about the outcome, the bulls still have a slight advantage as we move to Thursday.

 1.00 AM GMT

 Gold first resistance for Thursday is 1622-1632...
and first support is 1595-1607 ...
While below 1621.08 - 1626.05 it is more likely to 
fall further towards 1611.71 or 1607.31. 
Premature rise above 1626.05 could see it rising 
above 1634.85 zone.

June 13 
 
3.00 PM GMT

The gold market started out weaker today and in the lower half of the prior session's trading range until another weak retail report drove gold higher to the 1625 area.  We discussed this potential last night on the website as weak data has been pushing gold higher lately in the hopes of more easing.  The key will be whether gold will hold or continue higher like it did last week with the bad job report when we had that 60 dollar up day in gold. The key there is to keep in mind that gold did retrace that entire move during last Thursday and Friday’s 5 wave sell off.
The Euro is stronger for the 2nd day in hope that the debt crisis will find solutions that will calm investor fears.
There is another FOMC meeting on June 19th and there are the Greek elections on the 17th that the gold markets are looking at for direction.  Jamie Dimon of JPM will be testifying this morning on Capitol Hill on the losses from the trades.  He’s not looking for a battle and will make arguments over the Volker rule and that it restraints banker profits.
Spanish yields hit yet another record on the 10 year up to 6.71% this morning.  The bond market is demanding a fix and not a kick the can. If the anti Euro factions are elected in Greece on the 17th there will be a lot of uncertainty that will come into play.  This is all leading to the June 28th Brussels meeting where major decisions will have to be made.
 Retail sales this morning were the worst we’ve seen in a couple of years and the stock market has a negative tilt going into the open. We’ll have to see if that continues as the session moves forward today.
Gold prices could have been lifted by news of increased Kazakhstan central bank gold purchases, especially as that news was accompanied by confirmation that the central bank had also upped its gold reserve holding target to 20% from a prior holding level around 15%. Tempering the Kazakhstan central bank news was news of an increase in January through May gold output from Kazakhstan overnight. Gold at times this week has displayed flight to quality action, but at times it has also been clear that fears of more global slowing have served to tug prices downward on the charts. While some traders are convinced that gold is shifting into a safe haven mode, in the lead up to the very important political junction this weekend in Greece, others think the upward bias in gold prices off the turmoil in the Euro zone, is the result of rising QE prospects which in turn arise from the potential for a material change in the composition of the EU. Another issue that might increase safe haven interest and boost QE hopes in the gold trade, was another rise in Italian borrowing costs.

Gold Chart

Gold returned to the first target resistance line for this week after the jobs report and has reached the first weekly resistance point where a high could develop.  With it being mid week Wednesday, the 1625 area is a good candidate for a weekly high point as we’ve discussed on the website last night.  Should price continue higher from here, the next resistance point would not be until the 1650 area.   Thus this 1st target line is a good potential for a weekly high but the action and other things leaves us a bit inconclusive.  Support is coming in near the 1607 area and we’d need to see gold back below there to add to downside potential.  The 1600-1607 area should offer initial support today.  On a weekly basis, that blue support line at 1585 keeps this current move up from this week still in an upswing.
The key to the chart is that last week’s drop to 1561 was 5 waves down and this week’s move to 1625 looks like a counter trend move.  The choppy and overlapping action is what keeps us suspicious and skeptical that price could be drawing near a peak for this week at this 1625 area.  The cycles we watch are mixed and inconclusive and on that end, are not helpful. In one sense they argue that price could be gearing up for an inversion which would most likely favor the upside move is not complete.  So it’s a mixed bag all in all.
In summary, the 1625 area and first target blue line on the chart has the potential to provide this week’s high but the confidence factor is not as high as we’d like to see.  If we move above 1630, it would be suggestive that a test of 1650 could be in the cards. As long as price is above 1600-1607,  the very short term can continue higher.  Watch 1627-1629 --- if we move above that area, the potential to move higher into Thursday will be in play and favored.  With this choppy action, it’s a tuff trade in either direction.

 

5.00 AM GMT 
 Long Term=Up (major resistance 1767-1804 needs to be exceeded on a monthly close)
Medium Term=BEARISH (Major Resistance 1767 Monthly Close) Technically in bearish mode.
Intermediate Term= Bullish – the intermediate term moving averages have crossed but price needs to hold last week’s low at a minimum to keep the upside potential.
Short Term= Neutral to slightly bullish

Support and Resistance for Wednesday
Initial Resistance for 1627--1625 and 2nd tier 1635-1643
Initial Support 1595-1600 and 2nd tier 1580-1585.

What Next?

The potential that gold made a price high on Tuesday is a strong consideration for this week.  However,  we’d have to close back below the 1585 area for more confirmation that a short term peak is in place.  The choppy overlap condition of the pattern keeps us on the cautious side, but as long as we are above the 1595-1600 area on pullbacks, we can’t fully rule out another price push into Wednesday.  With that said, we’ve reached the first target high for the week at 1620 and with the choppy and overlapping condition of the pattern, we’re very cautious and the chance that we’ve seen the high for the week has a strong consideration.  Moves below 1595-1600 would add to that potential and a close below 1585 will favor the top is in place for the week.

Bottom line

the upcoming report on retail sales should be the next market event that is being watched carefully. Last week, gold ran up on weak economic data so we do have to keep that in mind as a potential report that could move gold.  The price patterns still look like they are choppy and overlapping and that has to keep the guard up for lower prices.  Gold’s 50 day moving average is at 1616 and the 34 at 1601 so price is at key moving averages to watch for.  If gold can overcome the 50 day it will add more steam to the upside.  It looks like the 1620-1625 area is key resistance for the week, but if it is overcome, then a push towards the 1642-1650 area will be in play.  With the choppy patterns, it favors the 1620-1625 area as the strongest potential for a price high this week.  Price is right at the green medium term channel line and that’s a very important price point for the medium term outlook.  In summary, if the price patterns weren’t so choppy, we’d be favoring higher prices and we’d be a lot more bullish.  It’s not that we’re outright bearish, but we’re certainly cautious due to the chop.  A close above 1625 would favor a continued move higher to the target 2 area on the hourly chart.

 

 June 12 

3.00 PM GMT 

CME NEWS

London Gold Fix $1,589.25 -$3.75

The gold market started out weaker today and in the lower half of the prior session's trading range. While Asian investors weren't overly upbeat off the latest financial solution to the European debt crisis, European and U.S. stocks did manage to claw into positive ground in a fashion that seemed to suggest some hope that a Bad Bank solution might serve to reign in the latest financial turmoil. However, some players saw the initial weakness in gold prices earlier  this morning, as a sign that safe haven interests have been tamped down again but seeing gold move back to 1605 leaves both bull and bears in a (and gold) in a position where there is confusion as to direction.

 in the face of stronger equities and a minimal risk-on tilt has to be discouraging to the portion of the bull camp that has recently banked on a lift from an eventual global recovery and perhaps from the prospect of inflation from years of central bank stimulus.

In fact, at least one analyst overnight predicted near term gains in gold prices, in the face of fresh central bank action directly ahead, while other sources simply touted Asian gold mining shares as a current value. The bulls might have been emboldened by news of a pick up in investment flows into some gold derivative shares in the latest weekly figures. At least in the early going today, the gold market was seeing minimal support from the dollar markets, but with many commodity markets down to start the Tuesday US trade, the outside market influence on gold prices wasn't exactly positive.

Chinese stocks were weaker overnight, as investors discounted recent slightly better than expected Chinese data and it also seemed as if Asian investors were apparently looking ahead to the upcoming Greek election with some concern. However, European equities were slightly higher early today as the trade was attempting to play up the latest solution to the EU debt crisis, with a "bad bank" approach. Early US equity market action was minimally higher, as the hope for a tighter fiscal union in the EU was seen as a fresh positive for the troubled Euro zone. The US report slate is somewhat active today, but most of the data is 3rd or 4th tier data, from 3rd party independent sources like the small business optimism index, a couple of weekly private chain store sales reports, the IBD consumer confidence index and a monthly US Treasury Budget statement.

Gold Chart

The hourly chart of gold shows that the next key resistance point for this week is the purple channel line near 1615-1620. The choppy and overlapping pattern is still a concern that price might not be ready to move higher on a sustained basis.  There is so much uncertainty in the markets going on that traders are very mixed on direction and it shows in the pattern.  The most likely high for the week would be this purple channel line but on the next chart this 1605-1608 area is also showing a resistance point that has some potential of also providing a high.

 7.00 AM GMT
 Long Term=Up (major resistance 1767-1804 needs to be exceeded on a monthly close)
Medium Term=BEARISH (Major Resistance 1767 Monthly Close) Technically in bearish mode.
Intermediate Term= Bullish – the intermediate term moving averages have crossed but price needs to hold last week’s low at a minimum to keep the upside potential.
Short Term= Neutral to slightly bullish

Support and Resistance for Tuesday
Initial Resistance for 1599--1609 and 2nd tier 1617-1627
Initial Support 1575-1585 and 2nd tier 1545-1555.

 What Next? 

The market can still go either way here as we have some readings that suggest higher and some that suggest lower. The choppy pattern and short term cycles have a negative bias while the patterns at the lows and price reversals have a slight higher bias. We either made the highs for the week at 1609 on Monday or the Tuesday/Wednesday time frame and the 1620-1630 area would be the other candidate for a price high.  Tuesday is a tough call as we are within such a choppy price pattern. We’ll favor a trade range on Tuesday from 1580-1603 but we feel it can go either way.

Bottom line 

The evidence of manipulation is present and so is the evidence of a lot of physical gold coming off the market.  It’s an amazing quandary to deal with.  Even the upcoming reports of retail sales and jobs is interesting because the last weak reports had gold rallying because traders thought it would help with more easing.  With the way the economy has been, these upcoming reports should show weakness or at least favor it. In summary, gold is caught between the forces of the liquidity crisis and just as it has propped the US Dollar, it has up until now had a negative effect on gold since March.  The situation in Europe is growing in fear of what has developed in Spain and what is coming for Italy and a few other nations. The key for gold is that it was the only market that really held above the Friday closing price. Oil, equities and the Euro were actually lower by time the day ended.  It’s only a one day trend but it certainly was interesting seeing gold hold its gains while the stock market buckled lower.   Some type of move one way or another from this 1590 area should be upon us on Tuesday.

 

 6.00 AM GMT

Last week’s run up to the 1633-1640 area was the first step in turning the trend back up and now it’s going to be important for gold to support near the 1550-1560 area this week in order for the trend to not turn back down.  The 1565 area will also be important on a daily closing basis as that is where the 89 week moving average resides. In summary, the potential for an intermediate term low remains in place but we’d like to see a close above 1633 in order to add to upside potential.

 4.00 AM GMT

GOLD extended last Friday's rebound to touch as high as $1607 as markets were initially cheered at the approval of Spain's $125 billion bailout package on Monday. However investors soon decided that there's nothing to be optimistic about as the bailout loan is just another step of the unravelling of the euro zone. Markets generally cascaded more than 1% from open except for the bullion, which staged a late rally overnight during the US session to finish yesterday over $1595. The precious metal was torn between $1530 and $1630 as the general force of liquidation fights against some safe haven appeal bulls. We advise traders to be sidelined for the moment to avoid short term volatility while we remain firmly bearish on the precious metal in the medium term. We don not expect the Federal Reserve to undertake any serious action next week. From the Fed's point of view, they will simply wait for the EUR to fall further first

Compass Direction

• Short-Term: NEUTRAL
• Medium-Term: BEARISH

June 11
 3.00 PM GMT
 CME NEWS 

The gold market got some minor lift from a slight improvement in global economic sentiment, which in turn was probably the result of fresh Spanish bank aid from over the weekend. Also seeing a minor jump in some Chinese loan activity and export data is being pushed on the airwaves to try and reverse some of the overly bearish macroeconomic views that were building toward China at the end of last week.

Surprisingly, the markets also seem to have retained hopes for more US quantitative easing ahead, perhaps because many players still think the US Fed fears some type of serious knock on slowing event from the troubles in Europe.

However, in what started out for markets as a big gap up on the Sunday night open in many markets has little by little continued to deteriorate into the New York open.  Gold moved to1609 in early trade Sunday night and had given up all of those gains by the early COMEX open and is currently near the 1595 area---where we closed out the access market last Friday.  It’s somewhat similar in the stock market as the Dow opened up with a huge gap Sunday night and has now pulled back to up only 60 to 80 points.  Even the Euro opened up on a gap and it too has given up a lot of the move. Finally, the yields in SPAIN were actually up this morning in some denominations.  There is a lot more questions on this Spain bailout --- as to what it means for bond holders outside the nation, where up to 20% exist.  It is even angering other nations who took bailouts with austerity programs and now they see Spain coming off without.   Yields in Italy on the 10 year are also up 20 ticks this morning to the near 6% level.  The bottom line to all of it is that there is a lot of uncertainty this morning as we approach the New York open.

Comex Gold Stocks were 11.008 million ounces down 32 ounces at the end of last week. The Commitments of Traders Futures and Options report as of June 5th for Gold showed Non-Commercial traders were net long 129,423 contracts, an increase of 27,957 contracts. The Commercial traders were net short 158,367 contracts, an increase of 34,328 contracts. The Non-reportable traders were net long 28,945 contracts, an increase of 6,372 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 158,368 contracts. This represents an increase of 34,329 contracts in the net long position held by these traders.

Chinese stocks were stronger overnight, as the Chinese data not as bad as was expected at the end of last week and the news of Spanish Bank aid has seemingly tempered global debt tensions. European equities were cheered by news of the Spanish bank aid move but some focus in the region is likely to begin shifting toward this weekend's Greek elections on June 17th where the next European event will be watched closely.

Given a slight expansion of loan activity in China, decent export data, sharply higher Spanish bank share price action and positive initial US equity market action, there would appear to be a modest risk on vibe in place to start the new trading week.  However, if the market happens to reject this initial view and then turns down from here the situation can change very quickly and could really put the markets on edge.  To some extent then, it will be important for the market to end the day with some gains or the nervousness could expand very quickly.

The US report slate is mostly empty today, with a San Francisco Fed Conference on Asian banking and Finance the only scheduled event on the docket today.

Gold Chart

The markets are rejecting the bailout from last night and are giving up their gains.  This could bring a lot of nervousness if these markets cannot hold the gap up prices from last night.  There is a minor support at the 1580 – 1585 area and if this area gives way, the potential to move down hard is a distinct potential.  Basically, if the 5 wave pattern is valid,  gold has either peaked and is about to head back down to the 1550 area or lower----or will find support in the 1560-1580 area and we’ll get one more move up to near 1620 before the turn down.  The situation in today’s markets is INCREASING BY THE MOMENT IN DANGER of the downside and the concern can quickly turn to fear if this bailout is rejected by the markets and investors.  In summary, the market remains in a position where the 1575-1585 area looks to be very important for price movement over the next two days.  If we don’t hold the support area that price is at right now, odds favor another move to the 1550-1560 area with the potential for more downside action.  Odds are tilting fast towards a downside and lower move here and quickly.  If 1580 gives way, the odds will favor the trend remains down and will favor lower prices.

7.00 AM GMT

Examining the daily chart; we can note the following:

1- 1520.00 area has been forming a strong support for the commodity, where price tested the level three times without being able to breach it. Thus this is the major key level towards further downside.

2- The price is has broken above the short term descending trend line shown on image, before finding resistance at the 50-days SMA where it retreated back to fluctuate around the breached trend line.

3- A potential double bottom has completed.

4- RSI has shown signs of recovery .

Having said that, we look for an upside rebound for the metal within the upcoming period

The trading range for today is among the key support at 1520.00 and key resistance now at 1640.00.

The short term trend is to the upside targeting 1945.00 per ounce as far as areas of 1520.00 remain intact with a weekly closing.

Support: 1581.00, 1570.00, 1556.00, 1544.00, 1532.00
Resistance: 1608.00, 1616.00, 1629.00, 1640.00, 1650.00
Recommendation Based on the charts and explanations above, we recommend buying the gold around 1580.00 targeting 1610.00 and 1640.00. Stop loss below 1555.00

4.00 AM GMT

 Gold first resistance for Monday is 1609-1619...

and first support is 1585-1595 ... 

3.00 AM GMT 

Gold rises on eurozone approval of Spanish bailout

Gold prices rose in Asian trading Monday on news that eurozone finance ministers have agreed to provide Spain with EUR100 billion in bailout assistance, which sent the euro rising and the dollar falling.
The U.S. dollar and gold often trade inversely from one another.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded up 0.81% at USD1,604.35 a troy ounce.
Gold hit at a low of USD1,600.55 a troy ounce and a high of USD1,609.25 a troy ounce during the session.
Gold futures were likely to test support at USD1,580.75 a troy ounce, the low of June 7, and resistance at USD1,609.25, the earlier high.
Gold rose on news that Spain will be able to recapitalize its banks thanks to the EUR100 billion in financing made available by eurozone finance ministers.
The news sent the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, down 0.71% at 82.32.
A risk-on session ensued, which was bullish gold as well as higher-yielding assets such as the euro and Asian equities.

1.00 AM GMT

It should try higher up to 1594 - 1605
After this rise, a correction is expected.

Supports / Resistances

Res 2    1,616.7300

Ex-High    1,594.7200

Res 1    1,605.4900

Pivot    1,583.4900

Sup 1    1,572.2500

Ex-Low    1,561.4800

Sup 2    1,550.2500

Gold prices settled higher in trading on Friday amid hopes of a possible bailout of Spanish banks. Gold prices had fallen sharply earlier in the day after the Federal Reserve Chairman Ben Bernanke on Thursday gave no indications of further monetary easing in the U.S.

Gold had been gaining momentum since last Friday after a weak jobs report raised prospects of further monetary easing by the Fed. However, hopes of QE3 were dashed after Bernanke’s comments on Thursday.
Speaking to Reuters, Gianclaudio Torlizzi from T-Commodity said that the fact that the Fed did not hint at monetary easing has weighed a lot on gold, and of course in this scenario of risk aversion, the inverted correlation with the dollar was restored and is having an impact today.
Torlizzi said that the outlook for precious metals in the medium-term, however, remains positive because the central banks will have to undertake an expansive monetary policy sooner or later. He added that central banks are just waiting for the right time as they don’t want to use the last cartridge too soon.
Gold continued to slide in early trading on Friday. The precious metal was lifted by reports that Spain was likely to ask for help for its struggling banking sector soon. The report immediately lifted gold and other risk assets.
At last check, spot gold prices were trading 0.2% higher at $1,592 an ounce. Earlier in the day, spot gold prices fell to $1,561.44 an ounce, the lowest level in a week.
Gold futures for delivery in August on the Comex division of the New York Mercantile Exchange rose $3.40 to settle at $1,591 an ounce.
In a research note, Marex Spectron said that now that the QE premium has exited the price over the last two days, the risk-reward looks favorable, particularly against base metals. Marex Spectron said in the note that for the first time this year, it favors owning gold and the reason is relatively simple-positioning. It noted that short positions have been building in gold all year, and it has been on its watch-list and now those short positions appear to have peaked.
But, concerns still remain about the euro zone. If the situation in the euro zone worsens gold could come under pressure. Investors will be watching developments over the weekend. 

YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.

Do your own due diligence.   

No one knows tomorrow's price or circumstance.  

I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.  

 I do not accept responsibility for being incorrect in my speculations on market trend. 

King Regards