Market Report: Consolidation Enters Tenth Week

by Alasdair MacLeod
Gold Money

Not yet having achieved a sense of direction, precious metals continued their consolidation, drifting lower into support levels.

After a mid-week rally, gold traded at $1314, down $13 on the week, and silver at $19.98, unchanged. Gold’s performance sees it hugging the 55-day moving average, which is a support level in the eyes of technical analysts. This is shown in the next chart.

[…] While technical traders see this level as support, they are holding back to see which way the trading range will be resolved, with a possibility the gold price might drop to the next support level at the 200-day moving average. The bullion banks who are still very short on Comex will almost certainly encourage the view that gold will move down to that level.

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