Gold Trend In 2012

Technical:

Gold has not entered down trend; still remains bullish, though weak.

Unless it crosses $ 1770 per ounce, it is unlikely to go up at great speed to retest all time high of $1922. The reversals are expected @ $1640, $1660 and/ or $1690.

Being weak, it is highly likely to touch lower levels @ $1460, $1370 and/ or $1311.

The price is likely to be range bound during the first half of 2012. The range is $ 1500 and $ 1700. It means that one may buy if the price approaches $1500 and sell when the price approaches $ 1700 with stop losses @ $ 1450 and $ 1750 respectively.

Fundamental:

US economy is stabilizing without further deterioration; US dollar is strengthening, more because of weak Euro.

Euro region is getting worse and there is no short term solution, no solution seen for medium term apart.

BRICS is not doing as well as they did; India and China are struggling to maintain their high growth rates achieved in the recent past.

It is not advisable yet to short Gold.