Monday, May 4, 2009

Stay on the sidelines.

Gold closed slightly lower Friday losing 75 cents to settle at $885.80/oz following a stable US dollar and a firming equity market. The precious metal's inability to break above the $900.00 level has accentuated the downside pressure with the swine flu outbreak not helping either. The recent gains in stock market have seen the risk aversion waning so the safe haven buying in gold is taking a hit too.
The short term trend is sideways while the medium and long term trends are bullish.

Support: $879.55 (Friday'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: $889.80 (Friday's high)

9 day moving average - $895.31
14 day moving average - $889.83
40 day moving average - $904.67

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