Today's forecast- Sell gold around 892

Prices have consolidated quite nicely and this is a very good position to establish a sell position. Trade with a sell position around 892 with a stop loss at 901.

Failure to breach resistance at $900/oz level has triggered profit taking in gold yesterday and as a result it settled 5.5 dollars down for the day. In addition to a slightly higher US dollar, economic data also pushed the yellow metal down after reports from the Labour Department showed inflation falling more sharply than anticipated signalling further economic weakness. Gold is often bought as a hedge against rising prices so fading inflation usually has a negative impact on the precious metal's price.

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

Support: $885.70 (yesterday's low)
Resistance: $913.30 (high of 11/03/09)

Support: $871.05 (low of 07/04/09)
Resistance: $909.85 (high of 03/04/09)

Support: $851.90 (low of 23/01/09)
Resistance: $898.40 (yesterday's high)



9 day moving average - $884.33
14 day moving average - $896.64
40 day moving average - $923.02