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Gold- stops and starts again

Yesterday afternoon gold did manage to trade below two noted support levels, at 1,935.12 and 1,933.42. The fall extended to 1,931.75, but that was the extent of it and pretty soon it recovered into the 4pm London FX fix. The rebound later continued all the way to the US close, where the metal later ended the day at 1,946.92. The take-away from this price action seems to suggest that stops were tripped once again below 1,933.43 and below the 200 day moving average too. However, as with the day before, gold did not set a daily close below either of those levels and that has helped the metal to steady so far today. The dollar versus Europe is a little lower now too and that is helping the topside a bit more, but at the same time it is not running away. Gold will surely react to the US CPI data later on, and that could hold the key for another restart in the uptrend, or another attempt on the downside below those two noted levels. In fact that 200 day moving average has now shifted ever so slightly and it is in place this morning at 1,935.55. The range seen so far today has been covered by 1,943.80 to 1,948.35. It is trading right now at 1,946.75

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