Daily chart of Gold going back to October 2010. Gold has been in a trading range between the lower 1300's to just above the 1400 level, about $100.
Gold is currently trading under the short term, mid term AND longer term 100 day moving average which is bearish.
Stochastics are in the lower oversold area with the K and D line under 20. (2nd day under 20, a third day may mean prices may head down to the low 1300, maybe lower).
It is trading along the bottom of the lower bollinger band and is at the support level of 1331, the November break low. The fibonacci retracement level of 61.8 is also at this area and should provide some support.
If it should pierce the 1331 level, the next support area is the October 2010 break low of 1313, then onto the even number of 1300 which is the 50% retracement level on based on the fibonacci that is drawn.
If your trading, you are probably already out of any long Gold tracking ETF's. the pro's that are short Gold may start covering their positions in the low 1300's. Many people will be watching this level and investor interest should be high and should provide support. 1250 is not out of the question.
Silver is still more volitile and can drop to the sub 26 level before support. Buying opportunity for those that have been waiting. February should be a much better month for the precious metals.
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