Gold Marketwatch – 15/05/2009
Posted May 17, 2009on:
Gold opened at 924.00/925.00 in New York. It dipped marginally to a intraday low of 923.50/924.50 before some short covering in front of key economic data. Equity markets initially rallied on the data and gold followed, climbing towards 930.00. It was well offered near 930.00 making it difficult for the metal to breach this level. However greater investor demand pushed it higher, peaking at 933.75/934.75. It traded within a narrow range on thin volumes for the remainder of the session and finally settled at 930.00/931.00.
Gold is closing higher for the second week in a row near 929. The weekly chart shows the close above 918 as significant and opens the door for a move to March high 966. For the last 6 weeks Gold has stayed between 866 and 918 (52 dollar range). The close outside the range is encouraging for Gold bulls. I suggest using a trailing stop loss now below this weeks low of 909.
Pivot – 927.97
Primary Support (Buy) – 921.73
Primary Resistance (Sell) – 935.22