Gold Was The Safe Haven This Week

This week precious metals continued their recovery, with gold up $35 at $1220 and silver up about $1 at $17 this morning, thus building on the improved trend since gold bottomed nearly $90 lower at $1132 on 7 November.
Gold seems to be finding support at the 50-day moving average (MA), which currently stands at $1198 and now rising. The 200-day MA is at $1246, which suggests supply at this level could cap the rise for the moment: these levels matter to technical traders. On Comex there is evidence of some buying of gold futures, as opposed to bear closing, which is reflected in the rise in net contracts for the managed Money category shown in the chart below.