Gold fell sharply yesterday triggered by a strong rebound in the US dollar with the weaker tone in equity markets possibly adding to the decline in the precious metal. Long liquidation and profit taking were mentioned which also placed other commodities on the defensive. Towards the close gold accelerated to the downside as sell stops were hit finishing the day $18.32 lower at $964.50/oz. Some traders pointed that selling might have occurred as a result of disappointment that gold could not hit $1000 level after reaching an intraday high of $989.95/oz.
The short and long term trends are bullish while medium term trend is sideways.
Support: $960.30 (yesterday's low)
Resistance: $1000.00 (psychological level)
Support: $958.35 (low of 29/05/09)
Resistance: $995.65 (high of 24/02/09)
Support: $944.00 (low of 28/05/09)
Resistance: $989.95 (yesterday's high)
9 day moving average - $964.78
14 day moving average - $955.26
40 day moving average - $919.18