Gold’s “chart shows that the weekly moving average, which takes the average of gold’s recent prices, now hovers around $1,204 — significantly below the $1,275 level at which gold finds itself on Wednesday morning,” according to CNBC.

Global central banks, some of which are seen as key supporters of gold’s upside, remain buyers of the yellow metal. Actually, central banks have been diligently buying gold since the global financial crisis in 2008.

SEE MORE: How to Prepare for a Possible Gold ETF Pullback

ETF flows into gold have expanded at their fastest pace since 2009. Physically backed gold ETF holdings are still one-third below the December 2012 peak, which suggest that prices can hold at about $1,200 per ounce.

For more information on the gold market, visit our gold category.

Tom Lydon’s clients own shares of GLD.