Dan Norcini: Gold still being held by $1680

The battle for $1680 is increasing in intensity as bears dig in to prevent what they know will be a defeat if they allow the metal to move convincingly through this level.

The factor allowing them to push a bit harder against the bulls today (and unnerving the bulls somewhat) was increasing doubts concerning the European bank recapitalization plan.

Get used to this – One might as well pick a Flowering Daisy and pull the petals one at a time: “She loves me; she loves me not”.

That is what “investing” has been degraded to nowadays.

Tomorrow brings the end of the trading week. If gold can go out over $1680 into the weekend, it will be “GAME ON” for the bulls. If not, we remain trapped in the range trade that has been the model for the last few weeks.

snapshot-946.png

Silver was whacked for a 3% loss today as the Risk Aversion trades came back on the heels of the concern over the European bank plan deal. If the trading contingent feels differently about that plan tomorrow, it will just as likely take back all of today’s losses and then some. Again, get your Daisy flower and start picking off the petals. Some business isn’t it???

Either way, it too reinforces $32.50 as the resistance barrier that must be taken out and held to get something going to the upside in the Silver market.

The HUI is no help whatsoever to the metals and will not be until it clears the 50% Fibonacci retracement level near 560 and holds it. Until it does, it is checkmated and in a range trade.

http://traderdannorcini.blogspot.com/2011/10/gold-still-being-held-by-1680.html

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