Gold price trading just below $1700 as investors look nervously to last year for clues on direction

The gold price is trading just below $1700 as we head into the weekend. Yesterday gold managed to briefly trade above $1700 but every-time was beaten back.
There seems to be some nervousness in the gold market at the moment which is preventing any buyers to enter the market with any real conviction. If we take a look at what was happening exactly a year ago it’s easy to see why.
On November 30 2011 gold topped out around $1750 (On November 28 2012 gold tops out around $1750).
On December 9 2011, a Friday, gold was trading right around where gold is trading today ($1700). However on the Monday (12 December 2011) gold started selling off and it closed out the day down nearly 3% at $1665.
This was the start of some big selling that took gold all the way down to $1550 on December 29. Gold ended up finishing 2011 up 10%. At one point in August 2011 gold was up 35% for the year.

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So fast-forward one year and here we are again, trading right around $1700, after peaking a couple of week’s back at $1750, going into a weekend with only a couple of weeks left in the year. It’s easy to see why the bulls would be feeling a hesitant.
There is one very crucial difference this time round. As it stands gold is up 10% for the year already and a fall to similar levels like last Christmas would mean gold posting its first down year in 12 years.

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