With all the attention on the crytocurrencies, the other important asset class has creeped up unnoticed. Good old gold has not lost its luster! 1200 is the vital support for gold, which is plain obvious on the charts. Seeing how the prices trade around that level gives important information of the intent behind the big holders of gold.
During the US election, the market flushed prices below 1200. Notice the v shape recovery back up above 1200. This indicates stop running and short coverings took place within the 1125-1200 region. The big holders want in on gold! The two black circles tested if the market was willing to accept $1200 as support. Notice how the first circle dipped a little below but buying quickly pushed prices back up. That's buying on dips.
The second circle retested 1200 successfully over a period of 5 days with little signs of selling ...
