Following the two week run up in gold to kick off the month of February, the yellow metal has spent the last week consolidating in this new higher range. US data was positive this morning with January home sales rising .40% month on month versus the expectation of -2.50%, this was up 11% in comparison to January of last year. Existing home sales also came in at a six month high of 5.47 million units. Gold shrugged off the positive USD data though, held psychological support at $1,200, and finished up on the day nearly $20. The Dow losing nearly 200 points in combination with strong ETF inflows appeared to attract bids to gold. The SPDR gold ETF, the largest of the gold ETFs, added approximately 610,000 ounces on Monday which brings its holdings to a one year high.

Near term resistance in gold is coming in at the recent high of $1,263 while support is proving to be strong around the $1,200 area. Silver traded down to just below its 200 day moving average at $15.01 before traders scooped it back up. It is consolidating between $15 and $15.50 and will follow gold’s short term direction.