Gold prices are sitting on $1,650 an ounce support line and if prices manage to hold on to this level they can trend up toward $2,000 an ounce for 2012. The key level is the Sept. 26 low at $1,594. If this level is broken we are looking at a correction in gold prices toward $1,450 an ounce.

Bullion prices are under selling pressure as a failed German bond auction sent investors toward the safety of US dollars. This bearish move pressed gold mining stocks lower. Rangold and Agnico Eagle Mines lost about 10% during the week. Sometimes gold stocks are leading indicators for gold spot prices which means gold prices could have a hard time fighting the sell off pressure.