Gold: How long will the recent weakness last?
Gold can’t seem to maintain any traction above 1690 recently with the precious metal shedding about $25 in the past two days closing below the 1680 level. At 1670 at the time of writing, the jostling for position between the bulls and bears continues as the bears can’t seem to quite find enough collective momentum to pull the markets lower for the time being. With the market being in an uptrend over the longer term, gold looks set to grind higher, which makes any pullback a good buying opportunity. There is further downside potential for the market on the short-term all the way down to key support level at 1643, where we could see buyers running in the market again. Key level for the bulls to watch sit at 1720 and 1760. Onto the main topics of today, a smattering of economic data comes in the form of US New Home Sales due for release at 3.00 pm (UK).
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