As we enter the final two days for 2014 trading we find the price of gold gaining some strength as it continues its tough-a-war between safe haven and U.S. dollar.
As we put 2014 in the rearview mirror and the start 2015 just on the horizon – Greece raises its head again spooking some market participants to shift into the safe haven of gold (GLD, quote). Greek Prime Minister Antonis Samaras said on Monday he recommends parliamentary elections to be scheduled for January 25 nearly a year and half before his party’s term is due. This move comes on the heels of a 3rd attempt to get Prime Minister Samaras’ candidate for Head of State approved.
Why is gold price continuing to remain in check? The U.S. dollar draws strength from last week’s report of the U.S. GDP jumped to 5% in Q3 beating expectations of 4.3% print. Add in this morning Italy had no problems in their bond auction suggesting at the moment contingent from Greece is limited.
Caution is warranted at these levels – a quick check of gold’s chart we find we continue in a downward trend as well as a downward Fibonacci wave. Indicators are split, another words for each bulls indicator I track there’s a bearish indicator.
Have a great New Year!!