Gold seems to have run into extremely HEAVY selling pressure at the 50 day moving average, which incidentally, just so happens to be coming in just below the $1700 level. It appears a concerted effort is being made to prevent gold from acquiring a "17" HANDLE, which is what the momentum based buyers are waiting for.
If you look at the chart closely, you can see the defensive fortification being erected by the bears. So far the market refuses to break down but it is stalling out a bit here and will need to quickly push past $1700 soon or we will see some short-term oriented day trader types start looking for the exits.
Notice that I am including the RSI indicator merely to show that it too is stuck below the 60 level, indicating the continuation of a consolidative (sideways) type of trading pattern in the metal. Until we get a clean break of 60 on this indicator, and preferably a run past 65, the pattern is sideways within a defined range of $1695 - $1700 on the top and $1665 or so on the bottom.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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