Gold Marketwatch – 04/05/2009
Posted May 4, 2009on:
Gold opened at 884.50/885.50 in New York. It traded erratically as the session began, rallying briefly before dealers took profit, driving it to an intraday low of 881.00/882.00. The metal later gathered steam on light trading. Gold quickly climbed as the traded day progressed, squeezing out shorts, peaking at 890.00/891.00. It retreated from its highs as the day unwound, finally closing at 887.50/888.50.
Gold is recording its fifth down week in the past six, as heavy selling pushed the metal back below the $900 level after clearing that point late last week. On a weekly basis, the metal has had difficulty making any kind of significant ground past the 50-day moving average at $868.31. Furthermore, the 50-day weekly moving average has been generally flat, with a slight downside drift since mid October. This is the first time such a pattern has been evident since gold began its long run higher in the earlier part of the decade. Does this point to peak strength in gold already being achieved? Time will tell, however, the $1000 an ounce level (or just north of there) does appear difficult to achieve from a longer term technical point of view.
Primary Support (Buy) 878.83
Primary Resistance (Sell) 901.30