Bears Get a Hint of Gold Fever
December Gold climbed as high as 769 today before retreating to the 759 level in the afternoon. Since breaking through resistance at the 720 level in early September, Gold has been on a major uptrend, soaring more than 5% in less than a month. This rapid pace has put Gold above both its 15-and 25-day moving averages.
On the economic front, core CPI came in right at expectations. With Gold usually viewed as a hedge against inflation, today's pullback may be the result of some profit-taking in long positions. Gold hasn’t seen prices like this since last May when it flirted with the 800 mark – the next level of major resistance which is still miles away at this point. For now, this is very much a momentum trader’s market.
