precious metals flash

Gold came close to 1700 yesterday, trading up to 1697.20, but not close enough to convince some players to give that level a try. Disappointment saw longs bail out again and Gold finally dropped below the 200 day moving average to 1679.70, triggering some sell stops. Global Gold ETF holdings saw a drop of 1 ton from ETF Securities. In India protests over the tax increase continued, but finance minister Mukherjee reiterated that the hike in import duty would remain. The Turkish Central Bank increased the ratio that Gold can be held as reserve ratio against Turkish Liras to 20% from 10%, which would encourage local banks to aim for client deposits of Gold that is usually held “under the pillow”. Gold seems to need a helping hand from the USD now, as the USD index is trading on supports and a technical break would be needed so that Gold could eye 1700 again. A sudden rise in the USD would probably get the Gold bears back again, where on the technical front, the 100 day moving average crossed the 200 day moving average to the downside last night. 1675 and more importantly 1665 seem the levels to watch today as a support, while resistance should be met at 1685 and 1700.