Gold short-sellers take 'no prisoners;' demand in China soars

Currently, Gold spot is trading at 1188.46, down -1.07% or (1269)-pips on the day, having posted a daily high at 1202.58 and low at 1184.41. 

Historical data available for traders and investors, during January, indicates that Gold spot had the best trading day at +1.41% (Jan.05) or 1664-pips, and the worst at -1.11% (Jan.18) or (1331)-pips.

Year of the Rooster; China long-Gold
Bloomberg reports, Gold exports to China soared in the run-up to the start of the Lunar New Year, with volumes increasing in December from major suppliers Switzerland and Hong Kong. More gold was sent from Swiss refiners to the world’s top consumer than in any month since at least January 2014, according to data on the website of the Swiss Federal Customs Administration, while imports from the Asian city-state also increased compared with November."

The report continues, "China is the world’s top gold consumer, according to data from researcher Metals Focus Ltd., and the start of the Year of the Rooster this week is associated with gifting the precious metal. Lower prices at the end of last year, brought on by a stronger dollar as the U.S. increased interest rates, supported demand."

Technical Outlook
Carol Harmer, Director at Charmer Trading Academy, notes, "I was a bit worried about Gold as you know yesterday. The reason being that this 1218/19 area that we just could not break above and already we have seen 1191, so we have come down a lot since hitting this important level, So already we have broken below the 23.6 fib level at 1197 and look poised to go on our way to the 38.2 located @ 1183. We do have this double top at 1218 and we are below 1204 and 1197 and also the daily PP is at 1200.

We are below quite a good cluster of resistance levels. Now we do have the 18 day M/A is 1187, so this level is quite important as well as well as pivots we use M numbers and these are resistance and supports added together, so one of the numbers today is 1188. There are reasons why we should see profit taking down at these lower levels has the bull run ended in Gold, well it was never a bull run it was only a correction to the leg lower from 1375. Looking at the weekly charts you can see that we retraced 38.2% of the move lower from 1375 to 1122 this was at 1218, so you ca see why I was banging on and on about this resistance. Let's see what we do this afternoon as it is always best to trade Gold in the US session.

Ichimoku Cloud Analysis: Gold