Anna Coulling writes:
"An interesting day for the gold market yesterday, as December gold futures sold off initially, only to recover later in the session to close at $1714.50, as the precious metal continues to trade in this narrow range, and holding just above the $1700 per ounce level, which was tested once again. The current price action is far from straightforward at present, driven as it is by a combination of factors including safe haven status, dollar strength, and demand for the metal which has fallen in China recently, and which was cited as a primary driver in yesterday’s market. The US dollar is also contributing to the current weakness, and with the currency of first reserve now looking to extend it’s recent bullish run higher on the dollar index, gold is likely to come under pressure once again. However, given the negative sentiment for risk assets now clearly in evidence, investors may seek the safe haven status of gold in the short term, particularly if the VIX breaks about the key 20 level on the daily chart.
"Moving to the daily chart for gold, the isolated pivot high posted on the 9th November is now adding pressure to the current move lower, with the market having failed to ..." Click over for the rest of her analysis and chart.