Gold lifts from lows after taking out support at $2,070.64

Yesterday the drop in gold, which was covered here at the time, saw the metal initially hold onto a technical level at 2,070.64. That had been the breakout level which had led gold to a fresh rebound high, at 2,088.52. The subsequent low then at 2,071.45 was clear testament to the validity of that price point acting as support. Initially the really dynamic rebound in the USD/JPY, from a low at 140.26, back above 141.26 seemed not to dent it either. However, as the dollar advanced further towards the US close, gold eventually tripped stops below 2,070.64 and that sent it falling back to 2,064.70 ahead of the close. It later ended the season at 2,065.61. It has rebounded today though and lifted back to 2,073.19 a short while ago. Once again it looks like the Yen is likely to play a dominant role in dictating the price action today, as the metal heads into the end of the year. Gold is currently trading at $2,072.40