The new gold’s increase during the past year has been seen as another excess growth. The recent publication of World Gold Council, a lobby group for the gold mining industry, has shown that this rising is followed by a real physical demand of gold.

According to the document, demand in 2011 rose 0.4% to 4067 tons. This trend is even more important if we consider the price’s rising of 28% during last year. In fact, calculating the demand’s value the increase allowed for the first time to cross the threshold of $ 200 billion.

Global demand for gold in jewelery fell 15%, but still remains the main reason for buyers with 60%. However the demand for investment (ETC) increased 5% during 2011, and 19% in the fourth quarter. This rising is principally due to Europe’s purchases, where investors have searched alternative investment in order to confront debt crisis.
India remains world’s largest buyer followed by China. The recent Indian purchases’ slowdown are explained by low rate of the rupee against dollar. According to Marcus Grubb, managing director for investment at the WCG, China could become the world’s leading investor in 2012, driven also by massive purchases of China Central Bank.

Technically, after a double top in 2011, the gold was pushed within a consolidation bearish area of 1550 USD. This point became the mid-term support, which allowed a significant rebound. Therefore, the commodity is close to many technical barriers. On the one hand, the transversal line which the cross last December helped the bearish trend’s continuation towards 1550 USD, and secondly that the resistance at 1790 USD.

Gold’s behaviour close the area of 1790 USD should be monitored carefully. In fact the cross of this level could push the asset towards historic price of 1910 USD. This scenario is reinforced by the graphic in weekly data, where the gold is supported by different moving averages.
This strategy will be invalidate if we come back under 1720 USD, this level could drive the commodity towards 1640 USD.