Gold Marketwatch – 01/05/2009
Posted May 2, 2009on:
Gold gapped lower just before the NY session got underway and recovered
marginally to opened at 883.00/884.00. The metal later traded erratically within a range, dipping to an intraday low of 880.00/881.00. Although initial jobless claims beat expectations it still sits well above 600K, painting a poor picture for the US labour market causing a sell-off of equities. Investors turned to gold, carrying it from its lows and helping it gather momentum. It continued to be well bid as the session unwound, closing on its highs of 890.50/891.50.
Gold is closing out its second “DOWN Month” in a row since reaching USD 1,006 in February. The unit had previously gone up for 4 months in a row off the 683 seen in October. The current level of 891 is pretty neutral based on resent ranges. On the daily chart there is a large trend line resistance that comes in at 910. On the base 866 is a key support after holding on two separate attempts in April.
Primary Support (Buy) 886.69
Primary Resistance (Sell) 909.32