A central bank purchase from the IMF is sending December Gold prices surging today.

Overnight is was announced that the Reserve Bank of India purchased about $6.7 billion in gold bullion from the International Monetary Fund. The plan was for the IMF to receive much needed cash while it agreed to offer reduced interest loans to low-income countries.

The transaction is serving as a notice to gold investors that central banks may become net buyers of gold instead of net sellers. For months, investors had believed that China was the only country aggressively buying gold. The transaction with India opens the possibility that other central banks are doing the same.

It's been reported that India's purchase took place between October 19th and 30th.  This explains why gold was trading sideways to lower even while the Dollar was weakening.  Traders were most likely holding the gold market steady was the transaction was taking place.

Technically, the main trend is up.  The old top at $1072.00 is now new support.  There isn't any resistance at this time.  This makes $1100 a viable target over the short-run.