UK Gold Trading Experts
  • Home
  • Trade Like a Pro
  • Gold Blog
  • Subscriber Resources
  • Legal Stuff
    • User Agreement
  • Contact Us

Gold Price - The Weekly Review

12/11/2012

0 Comments

 
Picture
Gold put in a solid week of gains last week, climbing $54 – its biggest weekly improvement since the end of August, signifying an arrest of the previous four weeks of losses throughout October.

The losses in October were a combination of a natural correction following on from week-on-week gains stretching back to the end of July, uncertainty in the run up to the US Elections,  the effects of superstorm Sandy and better than forecast jobs news in the US. 

The big news which stimulated the market last week was the re-election of President Obama.  The Bank of England and European Central Bank’s rate decisions and subsequent statements of intent hardly registered – all eyes were on America to see who got voted in.

If it had been Mitt Romney, we’d have seen the price of gold drop dramatically – this was weighing heavily on price in the run up as the election was looking like a close call.  His economic policies were an about-turn from those of Obama and so investors were wary of getting in behind gold until after the election.

With Barack Obama being voted in, the fiscal stimulus package known as QE3 will continue for the foreseeable and may even intensify if the US economy drops back into recession as a result of Congress not being able to agree a deficit reduction plan with the fiscal cliff looming.  If a deal isn’t cut by the end of this year, huge cuts in public spending and sharp tax hikes will automatically come into effect.  All eyes will be on this over the coming weeks as it’s likely to dictate the direction of most markets into next year.

Picture
Throughout this week there are a few key news events...

Early this morning Greece approved their 2013 austerity budget, and this will be followed later today by a meeting of the Eurozone Finance Ministers in Brussels.

Tuesday is a quiet day, with only the UK inflation data to look out for; but Wednesday is much busier with UK jobless reports and US Retail and Production Output data being released.  Thursday is another busy day with Euro GDP and both Euro and US inflation figures due.

We see gold consolidating its gains this week and next, with a steady climb towards $1800.  There is resistance around $1755-$1760, but after that there isn’t much in its way back to the previous yearly high of $1796.  If the price breaks through that previous high and $1800 then there really isn’t much in the way of resistance all the way up to the record highs around $1900.

On the downside, we’ve got support at $1730, $1715-$1720, $1700 and $1693; so there are a number of areas of support below the market before we would see a sharp sell off all the way back down to the low $1600’s.


0 Comments



Leave a Reply.

    Old Posts

    August 2021
    July 2021
    June 2021
    May 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    March 2019
    January 2019
    December 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    March 2018
    February 2018
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    July 2016
    March 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011

UK Gold Trading Experts (UKGTE) is a trading name of Drupac Limited, a company registered in England and Wales (company number 09167819) whose registered office is 1 St. Paul's Square, Birmingham, B3 1QU.