It was undoubtedly a rough start to November for gold bugs, who watched the gold price dip to $1,142 per ounce after suffering through a less-than-stellar October. But since then, the price has been on the rebound, climbing — albeit slowly — back towards the $1,200 mark. That said, investors looking at Wednesday's stock chart will surely notice a significant $20 dip in the gold price followed by a swift rebound. Claiming responsibility for the volatile price was the latest opinion poll on the Swiss referendum, which indicates a strong "no" on whether the country's central bank should boost its gold reserves to 20 percent from the current 8 percent. "The recent recovery in gold prices stalled on Tuesday," said a UBS (NYSE: UBS) technical chart analyst. However, the stall was short lived, with the yellow metal bouncing back to its previous trading price. The price dip was certainly a talking point on Wednesday, but more important is the fact that gold has finally ticked up enough to pass the $1,200 mark, a feat it accomplished on Tuesday when it crept up to $1,204 before slipping back down. On Wednesday, gold was back above $1,200 at $1,201. Gold has not been able to breach the $1,200 resistance level since October 30. While the price point proved unsustainable for the yellow metal, the movement was based on constructive technicals and physical buying. Commenting on gold's movement, HSBC analyst James Steel noted, "[g]old's break above $1,200 compelled fast money traders and others to cover short positions but it also invited profit-taking from short term investors." Steel also highlighted that "[b]ullion's rally was capped at $1,205 before a pare back in early gains after the release of better-than-expected US economic data."
Other than the early day trading activity, gold saw a mostly uneventful day Wednesday as investors waited for further cues from the next FOMC meeting, when the Federal Reserve is expected to deliver more news on its timeline for raising interest rates.Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article. Gold Drops $20 on Swiss 'No' Opinion Poll, Edges Back Towards $1,200 from Gold Investing News