No suprise that the price couldn't hold above 1330 even though there was a little break of the resistance. But it is a tough resistance level, and yet not a solid support level. You really need to climb high in order to come down at 1330 before going to a second move up, but yet the precious metal is not even trading in a channel. To see the price raising, you need a lot of macro economic situation and first foremost of it is inflation in order for private and institutional investor to seek for a "safe heaven" like gold. Gold would for them hedge the inflation. But with such a low inflation rate in Europe and the USA, I don't even mention Asia, there is no reason to buy gold because today Gold is more expensive then tomorrow. We will have to wait for the increase of the interest rate by FED and ECB before proceeding to an initial reversal. And at that time gold should be around 1180 or even lower.
I completely agree! Only when interest rates start to rise and inflation kick in, due to all the money printing by central banks (ECB will start printing soon) and artificial low interest rates, the medium, long- term trend for Gold (and Silver) will reverse, boosting prices to all new hyper bull market.