Gold Reaches 1st weekly resistance and highest price since Nov 9 2015

 According to the Hong Kong Census and Statistics Department, in December Chinese gold imports via the main conduit Hong Kong surged to the highest in more than two years, as - in Reuters words - "investors lost faith in collapsing stock markets and a weakening currency and snapped up bullion."

That was the highest monthly number since October 2013 when imports stood at 130 tonnes.

According to Bloomberg, "Investors took advantage of the lowest global prices in almost six years to stock up on bullion amid share market gyrations and concerns the central bank would let the currency depreciate to boost slowing growth in the world’s second-biggest economy. Consumers were also buying in the run-up to Chinese New Year in February, the peak demand season."

As China's equities slumped and its yuan currency finished 2015 with a record yearly loss, "people looked at other investment  alternatives that's why there was huge demand for gold," said Brian Lan, managing director at gold dealer GoldSilver Central in  Singapore.

't just suddenly soaring demand for phiscal gold: a jump in physical deliveries from the Shanghai Gold Exchange was also a sign of demand, Wang said.

Also, Hong Kong wasn't the only source: Swiss exports of gold to China jumped to 59 tons in December from 16.5 tons a month earlier, according to the website of Swiss Federal Customs Administration.

Gold Short Term

Gold has arrived at 1st weekly resistance in the 1122-1125 area.  Additional resistance lies at the 1129-1136 area.  Today's options expiration has unshakled and now the FOMC minutes and meeting will adjourn on Wednesday afternoon.  Key is whether the FED comes out with more dovish statements in lieu of what has happened to the stock markets globally and the deteriorating global economies.  These are the highest gold prices we have seen since November 6th 2015.  It is still possible to reach resistance # 2 as short covering and buying are taking place.  Odds are that would take place tomorrow during mid week Wednesday if we do plow above 1125.  Support is now forming at the 1095-1102 area and the 1080-1085 area.  Short term trends remain up, but odds do favor gold's peak this week to be either 1122-1125 or 1129-1136.   

Gold Medium Term

On a medium term basis,  the blue moving average is at 1119 and the Red at 1138.  Thus we should see perhaps resistance attempts at both places.  It takes TWO monthly closes above both averages for the medium term to go from bearish to neutral and it takes a monthly close for the blue average to be above the red and price as well to get a trend change to bullish.  The dual yellow lines are also defined as the current downtrend lines lines to watch.   Two monthly closes above the dual yellow line would be 2nd confirmation that the medium term trend has turned up for the 1st time since 2013.