FXstreet.com (Córdoba) - Gold is pulling down from record highs. The price rose to a fresh historic high at 1,226 an ounce during the Asian session but since then moved to the downside and fell to a daily low at 1,207. Currently trades at 1,214 near the price it had at the beginning of the day. On the downside could find support at 1,205 and below at 1,195 (Nov 11 high) and 1,180.
The fall in gold prices during the European session has helped the Dollar avoid falling to fresh year lows against the Euro and the Swiss Franc.
The GoldCore Bullion Services Team affirms: Gold may be overbought in the short term but in bull markets with strong fundamentals, markets can remain overbought for long periods of time as was seen in the 1970s. There are many institutional and central bank buyers on the sidelines at these prices but they will provide strong support with many waiting to buy on the dips.
According to the GoldCore Bullion Services Team December is a seasonally strong month for gold demand for jewellery: This means that any price correction is likely to be reasonably shallow. However, volatility may likely increase and a pullback of some 10% is quite possible.