Back at the start of December 2012 I wrote about a comment in the FT detailing the largest purchases of Gold by Central Banks in nearly 40 years and how this could be a contrarian sell signal for Gold I thought I’d do a quick follow-up with a chart to see how gold has fared since then.
This is a weekly chart of gold (apologies for the mess and scale – that’s due to wordpresses limits) which shows a continued down trend for most of 2013 in Gold.
We’re back into the (wide) zone of support between 1530 – 1570. Price has not closed below 1570 on a weekly basis since Christmas 2011. There’s certainly been a lot of moves down to the bottom end of that range (1530ish) but never a close, leading us to believe there to be strong support there. Now price is once again back down there (1539) but was unable to close below the 1570 level last week.
If it were to break that support then I see 1430-1450 as the next level of support. If it bounces then I want to see closes above 1630 at least before moves above 1670 and 1700. Personally I think we’re more likely to experience the former.
As always we shall wait and see and let the market play its hand.
FXTraderPauls Trading Adventures 
April 11, 2013
FXTrader Paul, Trading, Trading Set-ups, Weekly Analysis