Gold's ability to hold above the psychological $900.00 level has pushed the price higher breaching the 40 days moving average. The move was largely interpreted as a technical follow-through from Thursday but it also had fundamental influences including China's announcement that the country now holds over 1000 metric tons in gold reserves, up from 600 tons reported since 2003 fuelling speculation that other central banks may follow suit. In addition, until the release of the US government's methodology of stress tests for banks the markets are likely to stay nervous which in turn is good news for gold.
The short term trend is sideways while the medium and long term trends are bullish.
Support: $903.75 (Friday's low)
Resistance: $929.12 (high of 02/04/09)
Support: $889.45 (yesterday's low)
Resistance: $922.77 (high of 04/03/09)
Support: $881.40 (low of 22/04/09)
Resistance: $913.90 (Friday's high)
9 day moving average - $894.22
14 day moving average - $891.49
40 day moving average - $909.28
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