Gold & Precious Metals Review
$GOLD gained +8.30/oz this week, which is surprising because the $USD was up a strong +0.93% W/W. $GOLD closed at 742.50.
(As) I have previously opined, “I do believe the Euro and $GOLD will rally as soon as the US credit market crisis is gotten under control, and traders stop repatriating $USD and $XJY (Yen) from abroad.”
For $GOLD, the 50d MA is now 802.50, which will have a 7-handle next week (meaning the 50-day MA will be in the 700’s). The 200d MA is 881.35.
There was hope the G-20 leaders on Friday might actually spend some money rather than drown us in words. $GOLD lifted +$37.50/oz on the day. After it hit a spike top, the price started to slide back.
The G-20 meetings ended with nothing in the way of specific programs that would indicate immediate reflation. Perhaps they want to wait to hear from Pres. Obama after Jan. 20 – or at least see what deals he can “talk” his way through Congress in the interim. It could also be a wait-and-see if Paul Volcker is appointed the next Treasury Secretary, which might diminish the prospects for a higher gold price, at least for a couple months until the massive spending programs of the G-20 nations actually start getting implemented.
So, it’s back to watching paint dry. If the $USD rallies from its close of 86.72, I expect downward pressure on $GOLD.