GOLD moved firmly lower in offshore trade as we saw a roller coaster ride throughout the session as the ECB stepped in to buy sovereign debt and then as this ended the markets fell to session lows and then we saw a sharp rise as US data improved and then finally, going into the US close we saw a dramatic sell off as Fitch warned of the effect to US banks out of Europe. The USD gained on the night and Gold finished US trade weaker by 1.05% at $1,763. What a night and one of the most volatile nights we have seen in months as a number of events took place that countered one another.
Precious metals suffered as investors shied away from increased volatility on the night. However, having said this we still feel that precious metals held up well despite the sharp rise in the USD and the steep sell off in equities late in the session. We have seen a breach of short-term trend support but remain above key support at $1,750. Only a break here and then through $1,735 opens the door for a test of major support down at $1,695/$1,700. Solid offers remain between $1,77785 and a breach through here is needed to set a base in place and retest major resistance at $1,800/02. Equities will suffer in Asia today so we remain a buyer of dips as we may see further weakness in Asia today.

Compass Direction

Short-Term    Medium-Term

BULLISH        BULLISH

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