The “No” in the Swiss referendum was seemingly the end for gold at first. First, the gold price went from $1,167 to a low of $1,143, but that is where it ended. It was not so surprising that the gold price dropped significantly at the end of last week, because trading is always quite thin around the Thanksgiving weekend.

Short covering, a weaker US dollar, a drop on the US stock market and a recovery in the oil price all made that the price of gold rocketed upwards by more then $50 (!) dollars, putting it back up on its feet and knocking on $1,200 per ounce's door. Is this the second false breakout to the downside? Technically the bears are running out of juice here.

To avoid a fall into the abyss, the $1,200 dollar level will need to be taken out convincingly over the coming period. Today, the gold price has gone up by more than 2% already and the silver price by more than 5%. It is a sign off strength that the silver price is running ahead of the gold price and they are both still going!