Monday, 7 December 2015

Bounce in gold - is it now over? Monday 2015-12-07 19:41 GMT

Is the dead cat bounce in gold now over? A bounce that fails to get to a round figure (this time $1100) would be typical of most of the price action over the past 2.5 years.

Further to this, the upmove at the end of last week failed to bring gold back over 1000 Euros. So Euro gold is back in 3 figures again. Kitco has it at 991.78 EUR (-5.50 EUR on the day).

In Sterling, gold bounced at about 700 GBP, breaching below 700 on the last swoon but now at 713.81 GBP (-5.37 GBP on the day). 700 GBP is a key level that has been tested in the last couple of years and breached only very temporarily.

Last Friday was a big up day for gold in all currencies quoted on Kitco but still it is under 1100 USD, under 1000 EUR and I think there is danger to go back under 700 GBP, perhaps for a sustained period of time as gold is already flirting with thee figures in USD terms.

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