Thursday, April 30, 2009

Today's forecast- Stay on the sidelines.

Gold moved higher yesterday on the back of a weaker US dollar and strengthening in crude oil gaining $3.71 to settle at $894.31/oz. Despite a bigger than expected decline in US gross domestic product the markets focused rather on gains in consumer spending. So the flight to quality buying in gold was limited as strengthening equity markets capped the gains. Consequently the yellow metal didn't increase as much as other commodities with money going into oil instead.
The short term trend is sideways while the medium and long term trends are bullish.

Support: $887.10 (yesterday's low)
Resistance: $922.77 (high of 04/03/09)

Support: $871.50 (low of 16/04/09)
Resistance: $918.50 (high of 27/04/09)

Support: $864.25 (low of 20/04/09)
Resistance: $903.00 (yesterday's high)

9 day moving average - $895.42
14 day moving average - $891.18
40 day moving average - $907.16

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