I saw a story on Bloomberg this morning ..
Gold Gains in London on Speculation Jewelry Demand Will Climb Oct. 18 (Bloomberg) -- Gold rose in London on speculation that demand from jewelers, the biggest purchasers of the precious metal, will increase.
The four gold refineries in Switzerland that process the metal into bars for manufacturers are booked through next month, a sign of growing demand from jewelers ... Gold has gained in every fourth quarter since 2001.
...
Manufacturing demand was evident today from Southeast Asia, James Moore, an analyst at Kettering, U.K.-based TheBullionDesk.com, said in a report. Jewelers often stock up in the fourth quarter for the year-end holiday season. They made up 85 percent of the consumer demand for gold in the second quarter, the World Gold Council said in August.
that sounds pretty bullish. So let's look at a chart of gold...
A weekly chart is looking pretty bullish. However A) we still need to a see a breakout to the upside over that downtrend and B) there could be more consolidation before gold really takes off.
Considering the way December usually goes for gold, I'd consider that a buying opportunity.
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