Gold price holding steady around $1770 as the war drums start to beat loudly… everywhere

Back when the gold price was $1724 we saw little overhead resistance until the $1777 level:

As we speculated last week and this, there really isn’t much overhead resistance until we start getting around the $1777 level, which is where we’ll probably find the shorts camping out sometime next week.

And camp there they have, last Friday the gold price got as high as $1777 before some selling of note came into the market to take the price backdown to $1770. Then again today gold tried to break above $1777 but failed and again the gold price sold off to just below $1770.

Whilst not getting through the $1777 level at the first or second attempt the fact buyers are coming in and snapping at gold every-time gold dips below $1770 is certainly encouraging.   The longer that can go on the more emboldened the bulls will be to take on that $1777 level with conviction.

Should $1770 not hold decent support can be found at the $1720 level.

Gold $:

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Gold £:

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Gold €:

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So if last week was all about never-ending printing this week looks set to be dominated by beating war drums and mass protests. As a quick recap here’s what we’re talking about:

• Spain, Greece, and Portugal have git the streets to protest ‘austerity’
• Just about all the the middle-East jump on the anti-muslim film meme (Egypt, Libya, Tunisia, Morocco, Sudan, Lebanon, Pakistan)
• Not to mention outside the middle East (India, Balgadesh, Indonesia)
• …And the West (Belgium, UK Australia, Holland)
• Huge fire power by was of battleships in the Gulf
• Chinese protests bring Japaese companies there to close
• China sends 1000 boats to disputed island

The people are restless that’s for sure and the Japanese/China situation should be watched very closely to see how that develops.

Related posts:

1. Gold price holding steady around the $1660 level
2. Silver price holding steady above $30 – now up 10% on the year
3. Gold price holding steady around $1730 (again) ahead of FOMC decision
4. Gold price holding steady as market jitters and Italian woes linger on
5. Gold price steady ahead of Ben Bernanke’s Jackson Hole speech

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-holding-steady-around-1770-as-the-war-drums-start-to-beat-loudly-everywhere-7948/

Posted by Thomas Paterson on Sep 17 2012. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.