Today's forecast- Sell for good profit booking

Now, gold price has consolidated too much and is prone to a large decline from hereon. Any rally can be used as an opportunity for a good profit booking. So, don't miss the opportunity. Trade with a sell position around 882 levels.

Today's gold trend: Down
Next target: 850

Gold went higher in early trading as a poor start to the companies earning season reignited some risk aversion buying. In addition, following recent declines bargain hunting kicked in bringing new buyers into the gold market. Later on the FOMC minutes described more economic gloom but failed to mention concerns about inflation so gold gave back the initial gains finishing the day 2.25 dollars lower. The yellow metal acts as an inflation hedge but with many countries already in recession at least on the short term inflation worries are fading.

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

Support: $877.90 (yesterday's low)
Resistance: $909.85 (high of 03/04/09)

Support: $871.05 (low of 07/04/09)
Resistance: $896.97 (high of 06/04/09)

Support: $851.90 (low of 23/01/09)
Resistance: $890.02 (yesterday's high)


9 day moving average - $898.09
14 day moving average - $912.45
40 day moving average - $930.64