Gold Fever Cools a Bit
After yesterday's 15+ point gain in the December Comex contract (GCZ7), Gold gave it back and then some with a loss of 25 points in today's session to close at around 789. The low on the day was 783 before buyers came in around noon to bring the close up to the higher level.
On the chart, we see that today’s close is almost even with the 25-day moving average, as buyers came in below this line. Gold remains below the 15-day MA, showing that we have a quick market to the downside based on the downward action on November 12th. The fast stochastic indicators are right around the 20 mark. If this turns out to be a short-term reversal forming, it has three supporting factors – stochastics, the 25-day MA, and a little bit of support left over from late October. If the market goes to the downside, the next level of support is around the 770 area and below that, 730.
In the news, both CPI and core CPI came in right at expectations, initial jobless claims came in above expectations at 339,000 (325,000 forecast), and Crude inventories rose by a surprising 2.8 million barrels.
Mike Tosaw, Director of Education
