Gold picking up from $1,100 support

Gold prices have been suffering under widespread Dollar strength, according to the Saxo Bank Strategy Team, pushing Gold prices 11% lower from all-time high: This has got to be viewed in the context of how the market has been performing over the past few months with large flow of funds moving into a crowded space. The USD 1,100 level was tested this week which represents a near 11% correction from the highs made some two weeks ago.

From a technical point of view,$1,110 offers an strong support levels although position squaring on year end could bring about further corrective moves, says the Saxo Bank Strategy Team: Technically the USD 1,100 represents a decent level of support but continued dollar strength could trigger additional position squaring with the October high at USD 1,070.80 providing the next level of support followed by USD 1,030 which is trend line support from the October 2008 low.

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