LONDON (Commodity Online): The gold was sharply higher yesterday, supported by a very weak trade in the U.S. Dollar and the metals stable performance yesterday as crude was down $3.00 and the dollar was sharply higher.

The market easily absorbed the IMF planned sale of 403.3 tonnes of gold, a minor setback that appears to have been a short term buying opportunity after last night’s Asian and European performance in the gold.

It was rumored that China and Russia are interested in purchasing the IMF gold, but it appears that this would be at a discount. Statements from a Chinese commercial banker indicated that the government is more interested in buying gold in yuan from domestic producers (majority are state-run) rather than buying gold in the open market with dollar reserves.

ETF demand has picked up the past two weeks and so has the gold price. The current price target for December gold is $1032.00, a settle above this will trigger a new objective at $1332.00.

Intraday resistance is 1020.20 and 1025.80. Support is 1003.20 and 1000.00. This bull market may be rejuvenated after a display that bearish outside influences can be dealt with.

December Silver price target is $18.35. Resistance for today is 17.43 and 17.69. Support is 16.80. The December Gold/Silver Ratio continues to narrow, settling at 59.53 to 1, The downside objective for the December Ratio is 54 to 1 and resitance
is 61 to 1.

Courtesy: Linn Group Metals Commentary