Gold Marketwatch – Friday 29/05/2009
Posted May 30, 2009on:
Gold opened at 975.00/976.00 and light profit taking caused the metal to quickly dip to an intraday low of 970.50/971.50. Worse than expected GDP and personal consumption helped gold to rally from its lows, finding resistance near 975.00. However the flight to quality continued as the dollar softened, carrying the metal to a high of 980.00/981.00. It spent the remainder of the session trading within a narrow range on thin activity, closing at 978.00/979.00.
Gold saw a massive move to the upside today, soundly breaking resistance at $967. We see the $1000 level as the next obvious target from here as the one month uptrend has extended itself with today’s move after consolidation over the past week. The bullish picture for bullion is confirmed by the weekly candlesticks which have seen four consecutive up weeks for gold. There is one sign of caution however, as the RSI for gold has now hit overbought territory, as it did in February when it last broke $1000. Continue playing the uptrend but be aware that the market may be set to turn shortly.
Pivot – 966.93
Primary Support (Buy) – 953.37
Primary Resistance (Sell) – 989.21