Gold closed yesterday’s trading session around $1745 an ounce after a bearish day. Gold’s decline
could quickly result in its re-entering of its previous trading range between $1729 and $1735 since the
levels between $1735 and $1745 are very fragile.

Investors are still looking at the fiscal cliff debate with less than a month to resolve it and analysts are
considering the possibility of another near term solution. It is unlikely that anything extreme will be
published, but none-the-less, markets should react positively to any agreement even if it is only for a
short period. Gold is still looking bullish for the year end. Even if it were to head back to its previous
range, further stimulus could be introduced soon enough.

Gold closed yesterday’s trading session around $1752 an ounce after another weakening of the US dollar. This came about amid an agreement over Greek debt that would appreciate the euro and encourage greater confidence in the euro zone economy.

Ironically, a further appreciation of this confidence could push Spain into asking the ECB for bailout funds, under better austerity conditions. Especially after Greece has received less harsh measures, and given the fiscal cliff debate in the US, it seems that raising taxes is counter-productive.

Gold closed last Friday at 1753, the same resistance level that we predicted on the November 20. This level is its highest since October 17 and is a strong bullish indicator for gold as it pushes again towards $1800 an ounce. The October NFP was the last time that gold almost touched 1800 and December’s NFP could be its first step over the significant 1800 mark in more than a year.

Gold closed yesterday around $1729 an ounce at the bottom of its current trading range between
$1729 and $1735, although this range has tightened even more since the US market closed for
the Thanksgiving holiday. Gold traders experienced yesterday a robust sideways action between
$1728 and $1732.

Gold closed yesterday just below $1730, entering its last trading range between $1729 and $1735. This trading range may even shorten today as Thanksgiving is celebrated in the US and gold’s volume could be a much less than usual.
Traders should look for tight resistance and support levels for the next 24 hours and trade the confirmed sideways action by gold. Yesterday’s entrance to the previous range was done with a quick spike up, as gold travels between ranges in quick spikes and trades in durations of between 24 and 36 hours on average.