Tuesday, November 23, 2010
Gold was up today with the US Dollar index. North and South Korea have tensions and certain countries within Europe have debt issues. People flock to safe investments in uncertain times which is why Gold was up $13.50 today.
Gold pulled back to the 50 dma which was also near the Fibonacci 23.6 level of support (Double support!) It may have some resistance going through the $1388 level as it was the previous high a few weeks ago.
Last year in early December, Gold hit a top and pulled back for the rest of the month. It is speculated that funds already had a sizable gain in Gold for the year and wanted to lock in their profits. (It's nice to show a big gain to your shareholders). Keep an eye out for this potentially happening again. At his time, Gold has a year to date return of 27.1%.