Monday, May 25, 2009

Buy gold at this correction

Gold extended its rally Friday as the US dollar remained under pressure enabling the precious metal to hit a fresh two-month high of $961.42/oz. Worries about possible ratings cut for US debt after Standard & Poor indicated Thursday that the UK's triple-A rating could be downgraded also supported the yellow metal. Towards the close some profit taking occurred in gold ahead of a three-day Memorial Day week end in the US yet the market remained in positive territory closing $3.85 higher at $956.35/oz.
The short and long term trends are bullish while medium term trend is sideways.

Support: $949.60 (Friday's low)
Resistance: $967.00 (high of 20/03/09)

Support: $946.05 (low of 20/03/09)
Resistance: $962.50 (high of 19/03/09)

: $935.55 (low of 21/05/09)
Resistance: $961.42 ( Friday's high)

9 day moving average - $939.84
14 day moving average - $932.21
40 day moving average - $905.82

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