gold

Yesterday was rather quiet in precious land, where Chinese volumes started to drop in Shanghai ahead of the New Year. Gold touched 1670 in European trading, but lacked of momentum and it was again the New York market that sold Gold to the lows of 1649.10, this time however not willing to push out daily shorts again towards the close. More interesting was Silver, that took out first technical resistance levels and traded close to the next major zone of 31, with the high at 30.92 USD. In option land, news of a large increase in open interest on the Comex 40 strike Call with May expiry made the rounds, which doubled to 10 Mio. ounces. The close finally formed a Doji on the Candle Stick chart, which usually suggests indecision between bears and bulls and to rather be cautious, after a rally that has taken us almost 5 USD higher since the end of December. Quick note to Palladium, which technically still looks good and has room to 690 if not even 700 USD. Asian trade was a non event today, Shanghai volumes dropped heavily on the last day of their year. For Gold we would look for support at 1652 and 1647 today, while stops above 1660 should lead us again to the 1670 level. Silver ominous level will be the 31 USD zone to watch. Gong Xi Fa Cai!