Gold climbs in afternoon trading

The gold price has traded either side of $1320 as it continues to oscillate around this level. 

Gold balls
Source: Bloomberg

With a number of institutions giving up their positions on the London Gold Fix (possibly due to the unfortunate choice of name), now down to just four, the World Gold Council has decided this is its opportunity to have the previous set-up torn down and a newer fairer version installed. Considering the fallout from the Libor rate which worked under a very similar system, it is obvious why there are worries over this current model.

For the time being, I would continue to hold the long position in the gold price. However, a break below the 100-day moving average might see this confidence quickly eroded.

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