On Monday Dec 21st , Warren Bevan wrote: "I think we will see a sharp move to test $1,075 to mark the low". We got that brief intra-low the next day Dec 22nd. I moved with the Eastern central banks on this pullback and diversified a few more USD's into precious metals and related stocks (see ECU).

Cheers J

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Christmas Comes Early For Precious Metals Buyers

By Warren Bevan

Gold continued to consolidate, but only fell 0.24% for the week. You’ve got to love the Chinese coming out on http://www.financialpost.com/news-sectors/story.html?id=2293716" onclick="window.open(this.href); return false;">December 2 saying investors should be wary of a gold bubble forming. In hindsight it just so happens that was THE day gold topped out. Have no fear though, we are only halfway to the top of this current up-move. Gold’s just taking a rest for the holidays. If you’re worried, don’t be. Don’t bother to look at any charts or price quotes until the new year is officially rung in. You deserve the peace of mind!

The RSI remains above the important 40 level after bouncing off it exactly mid week. The up-trend that began mid-August is still holding. Expect a nerve-wracking move below that line for perhaps a day or two, but more likely a matter of hours.

The Fibonacci retracement levels are looking to be roughly containing the gold price now and I don’t think there will be any move out of those levels for long. The moving averages are all heading higher still but the price is slightly below the 50 day moving average. Support is shown in $25 increments. I think we will see a sharp move to test $1,075 to mark the low.

MACD is still bearish and about to head into negative ground. Slow STO remains in the area where good things begin, and flat. Enjoy this early Christmas present and order yourself up some physical metals with what’s left of your Christmas budget. It’s the gift that keeps giving you more money.