Gold Marketwatch 05/05/2009
Posted May 6, 2009on:
Good fund buying before the session began helped gold rally, opening at 911.25/912.25. The metal continued to be well bid due to possible inflation fears, climbing to a high of 915.70/916.70. It later came under pressure,tumbling from its highs, finding support near 910.00. The metal could not sustain this level as dealers took profit, dragging gold to a low of 900.00/901.00. It traded lightly within a narrow range for the remainder of the day, finally closing at 903.00/904.00.
Gold took a run toward key technical pivot 918 today but fell short at 915. The metal has now dropped back to show a marginal “Down Day” at current 902. This 902 area is where the major trend line comes in off the February, March and April highs. Key downside support is seen at 880 then 866. This 900 number seems to be holding the unit in a tight consolidation. It will be hard to get excited unless we can start moving away from this level.
Primary Support (Buy) 885.45
Primary Resistance (Sell) 916.50