First I want to offer my condolences for Indian readers who suffered horrifying terror event at the city of Bombay.
In the short term the technicals rule the price of gold. Gold was due for a bounce with or without the Bombay event (see yesterday chart).
The Aug gold future contract managed to close above its 50 DMA but is currently still struggling with the 50% Fib line. Spot gold did cross its 50 DMA as well as the 50% Fib line. Gold/Euro is back above 500 Euro, above the 50 DMA and above the 50% Fib. Gold/YEN is looking the most bullish, well above the 50 DMA and just below the 38.2% Fib. Gold/Silver ratio = ~55.64, Gold/Oil ratio =~8.64, Dow/Gold ratio =~17.38. Silver continue to lag behind - still below the 61.8% Fib and the 100 DMA.
Fib lines above the current price are resistance and Fibs below are support, the same goes for moving averages(see charts below).
Zimbabwe: RBZ Eyes Gold Mine
THE Reserve Bank of Zimbabwe is reportedly eyeing a controlling stake in Globe and Phoenix Mine in a desperate bid to improve Zimbabwe's dwindling foreign currency reserves.
Sources told this paper that the Kwekwe-based gold mine was one of the projects that the Central Bank was eyeing with monetary authorities already having begun talks with unnamed horticultural producers for possible acquisitions. -source
By the way, anyone can copy my charts but please provide link and mention the source.
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