Tuesday, June 9, 2009

More consolidation likely for gold.

Gold remained on the defensive for the second trading day in a row as the US dollar continued to appreciate against the Euro supported by global equity markets weakness, general risk aversion and a downgrade to Standard & Poor's credit rating for Ireland. There were long liquidation and sell stops triggered with the downward move possibly accentuated by reports of a slight decline in physical holdings of gold ETFs. Although towards the close the yellow metal managed to regain some of the losses, it settled $1.47 lower at $953.83/oz.

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

Support: $942.85 (yesterday's low)
Resistance: $982.80 (high of 04/05/09)

Support: $935.55 (low of 21/05/09)
Resistance: $966.24 (9 day moving average)

Support: $924.75 (low of 20/05/09)
Resistance: $959.70 (yesterday's high)

9 day moving average - $966.24
14 day moving average - $961.40
40 day moving average - $924.27

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