gold

Risk was on yesterday, overhearing that Fitch intends to cut several EU countries by one to two levels by the end of January. The IMF said it is intending to boost its lending capacity by 500 billion USD, with Japan, the BRICs and oil exporters the main contributors. Greek officials added to the positive IMF news, that a deal with bond-holders might come as early as this weekend. US markets saw agressive selling in Gold after the opening, where little more than 1 Mio. ounces changed hands in just 20 minutes, pushing Gold to the day's low of 1642. Strong buying was met on several attempts at the lows, which caused a U-turn in direction, further strengthened by shorts running to cover on breaks of 1650, 1655 and 1660. Asian activity was muted overnight and physical volumes in Shanghai are at the lows since the start of January. The technical picture suggests that an attempt to take out the 1670 level should be successful today and target the long upper trend line that comes in at 1690 today.