Gold price dips as China goes on holiday. What's the pattern to look for

Shanghai (Feb 4)  Happy New Year to anyone celebrating the lunar new year. Gold is under some pressure today, down $7 to $1311 after a nice rally last week. The 100-day moving average is tracking closer to the 200-dma so we'll have another golden cross in the next week or so.

However the trade at the moment is a sortof buy-the-rumour, sell-the-fact on Chinese new year. There's a bid in the weeks leading up to it and then there is a pattern of selling early in the week. I talked about it on BNNBloomberg on Thursday (see the final 30 seconds of the video below). That doesn't mean the seasonal pattern of strength is over. It tends to bottom around mid-week and catches another lift when Chinese markets re-open.

ForexLive