"Oddly enough the Chinese don't buy gold during 'Golden Week'".So much for all the pent up demand for physical in Asia.
There is no reason we can't re-visit the $1179.40 low before year end, on the way to three digit prices in 2014.
From Kitco:
Gold prices are sharply lower and dropped to a fresh three-month low in early U.S. trading Friday.
Chart-based selling pressure, including sell stop orders being triggered as the U.S. futures market opened, is featured. Also, weak-handed longs who were under water were forced throw in their towels. December Comex gold was last down $30.10 at $1,266.50 an ounce. Spot gold was last quoted down $18.10 at $1268.75. December Comex silver last traded down $0.771 at $21.125 an ounce.Kitco spot $1264.60 down $21.80:
Asian and European stock markets rallied Friday, following the big gains in U.S. stock indexes Thursday. U.S. stock indexes are slightly higher Friday morning, but are holding those large gains scored Thursday. It’s a “risk-on” trader mentality in the market place to end the trading week, and that has pulled trader/investor monies away from the precious metals markets and into equities....MORE
...Technically, December gold futures bears have the overall near-term technical advantage and have gained fresh downside momentum this week. Prices are in a six-week-old downtrend on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,330.80. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,250.00. First resistance is seen at $1,276.90 and then at $1,291.50. First support is seen at $1,260.00 and then at $1,250.00....
