Today's forecast- Buy gold below 920 with a target of 938.

Gold has consolidated quite a lot and is perfectly poised for the big move. So, it is good to buy and hold it until an initial target of 938 is hit.

Next target: 938
Today's trend: Up

We saw an 'Inside Day' pattern in gold yesterday with a lower high and a higher low engulfed by the previous day range. The yellow metal started the day higher as investors appeared to be using the recent pullbacks as an opportunity to establish long positions again helped also by a weaker US dollar and a stronger crude oil. But later on gold fell, closing near flat as the dollar bounced from its weakest levels and crude gave back the early gains. So overall, the trading session was one of a choppy consolidation which could be set to stay on the same course ahead of ECB and G20 meetings on Thursday.

The short term trend is sideways while the medium and long term trends are bullish.

Support: $908.55 (yesterday's low)
Resistance: $945.32 (high of 26/03/09)

Support: $906.55 (low of 12/03/09)
Resistance: $936.15 (high of 27/03/09)

Support: $904.85 (low of 03/03/09)
Resistance: $924.50 (yesterday's high)


9 day moving average - $930.33
14 day moving average - $930.39
40 day moving average - $934.79