Paper gold continued higher off the established swing low at 1562, now near term support, and closed right at resistance around 1605. Further resistance is going to be at the 200 day moving average at 1617. RSI is in over-sold territory and MACD is leveling off. Stochastic is technically embedded (3 consecutive days below 20) and price has done nothing but move back into the Bollinger band. While stochastic is climbing, until it crosses the 20 level it suggests rallies are nothing more than selling opportunities for shorts. A cross of the 20 level targets the nearest moving average as a price objective, in this case the 18 day moving average at 1685.
Substantial technical damage has been done to the chart and will likely require some number of weeks to overcome. This gives buyers of physical gold ample opportunity to acquire real gold at bargain prices. Do not fall for the top callers in gold who say that a breach of the 200 day moving average signals the end of the gold. Instead thank them for their silliness and their efforts through mainstream media to bolster the credibility of paper by scaring people out of gold. They are making it easier for you to buy real gold at a huge discount! Remember, if you are trading gold futures or ETFs, you are trading paper and you are aiding their efforts to separate people from their wealth. UPS says my last purchase of Canadian Maples delivers today, and with that said I say Merry Christmas! I hope your New Year is a golden one!
The weekly chart says the trend is intact and nothing particularly alarming is happening. In fact, a reversal here opens the door for 1750-1800.