Gold was down -24.30 for the week (-2.09%), closing at $1137.30 (continuous contract). GLD (gold trust ETF) lost about 2% as well, closing at 111.24. Just last week, gold had made a new 2010 high. In last week's report I said: "Gold's daily chart is bullish, but it is also starting to enter overbought territory. Gold has been performing well despite a steady dollar. If the dollar were to correct, it would put a bid under gold. The chart has turned decidedly bullish if price holds the breakout.
The weekly chart is looking up as well, although a positive MACD crossover has not yet occurred, and is necessary, if a sustainable rally is to unfold."With gold's drop this week, price is seriously testing the validity of the breakout. As the daily chart of GLD shows, horizontal support at 112 has already given way, and support at 110 is being tested. Broken support at 112 has now turned into resistance. (more)
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