As we approach the end of the week, trading volumes will fall off sharply as traders leave their desks for the holidays, with gold now looking likely to see a 25% loss for 2013, the first annual loss for 13 years.
The big question is what will happen in 2014 - is this the end of the bull market or a mere correction in a continuing super bull?
Equities have corrected recently and the dollar is weak - with oil moving higher again, this should be an ideal environment for gold to rally, however this has not yet been the case. This is a worrying development and perhaps a warning signal regarding the underlying strength of the gold market.
Support can be found at 1223-1227, 1217-1220, 1212, 1200-1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1230-1235, 1245, 1250-1255, 1268-1270, 1277-1280 and 1291-1295. A break above 1270 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.
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