![\"gold](\"http:\/\/www.laidtrades.com\/wp-content\/uploads\/2010\/10\/102510gold.png\")
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After marking a new historical high at $1,386.82 per ounce back in October 14, gold appears to have lost its upward momentum as it slid back to a low of $1,314.60. In my opinion, however, gold\u2019s recent correction is very much warranted due to the fact that it was already trading at an extreme overbought condition. It also exchanged in a rather fast pace, marking new a new-all-time high after the other in succeeding trading days. In any case, gold may once again resume its upward trend after it found support at the uptrend line and at the $1,320.00 marker. A hidden bullish divergence, where the prices register higher lows and the stochastics marking lower lows, can also be seen. This occurrence suggest that buying interest could again make a comeback. Furthermore, this morning\u2019s bullish gap adds to signs that the demand for this precious metal is indeed increasing once more.<\/p>\n
Gold\u2019s rebound was helped by the broad-based selling in the USD when the G20 officials said that it won\u2019t engage into a \u201ccompetitive devaluation\u201d of their respective currencies in order to promote their countries\u2019 export industry Rather, it said that it would just let the market dictate the forex valuations. So given the US Fed\u2019s openness to do another money-printing scheme (quantitative easing) to encourage spending, traders maybe beginning to shun away from the greenback again. Another event that could place some selling pressure on the USD is when China allows the Yuan to trade more loosely and thus become stronger against the US dollar. Chinese officials could do so by selling more of their dollar reserves in the market. Such, of course, would dilute the USD, making investments in other instruments like gold more attractive.<\/p>\n