FX.co ★ Gold: sell on rallies

Santa rally continues on the stock market after the US jobless claims fell more than forecast. Jobless claims turned down by 42k, the number stood at 338,000, forecast numbers had been 346,000. The data shows extremely strong. Gold made high at $1,215.5 yesterday. The yellow metal came back to the level of $1,200 and surprisingly managed to hold above the uneconomical level.

Bulls took gold to weekly high levels at $1.215.5, weekly low at $1,192.4. In Asia's trading session gold is trading at the level of $1,210. Hourly chart indicates overbought levels. In India the import of gold dore bars was permitted against a license issued by DGFT. In August 2013, the government of India imposed 10% import duty on gold along with other metals.

Support $1,208 $1,200 $1,195

Resistance $1,217 $1,220 $1,227

Until gold close above $1,250, traders can go short on every rise. If any fall happens below $1,180, we could see a new bottom before March 2014.