Gold rose 1 percent on Friday, rebounding from losses earlier this week. That meant that the yellow metal had made its 11th consecutive year of gains. The gain was 10 percent for the whole year of 2011 but if the comparision is taken from September, where it made its high of $1920.30 - then it would be a loss in its quarter in more than three years. Gold fell heavily in December, as hedge funds scrambled for cash to meet client redemptions and European banks trimmed their gold holdings to raise capital. It would be worth noting that U.S. February gold futures contract settled up $25.90 at $1,566.80, snapping six straight sessions of losses. However,despite a rally on Friday, technical factors suggested that gold momentum is in the bearish region:
Bullion's 20-day moving average dipped below its 200 DMA on Thursday, as short-term momentum has turned more negative than long-term momentum and could show that the current downtrend is pervasive.
Bullion's 20-day moving average dipped below its 200 DMA on Thursday, as short-term momentum has turned more negative than long-term momentum and could show that the current downtrend is pervasive.
