Gold Marketwatch – Tuesday 16/6/2009
Posted June 16, 2009on:
Gold opened at 933.50/934.50 and briefly ticked higher as the metal became well bid, peaking at 937.50/938.50. A greater than expected contraction in the Empire Manufacturing caused equity markets to slip and gold followed. A stronger USD along with slumping oil and base metals inspired more selling and the metal tumbled, finding support near 927. It recovered marginally and traded within a range as the session moved towards the close. Dealers later took profit, pushing it to 925.50/926.50 and it finally settled just above its lows at 926.50/927.50.
Gold is currently testing its 100 day moving average (925.24); a substantial
break below would be bearish, however throughout April the 100-day proved a poor signal. Many studies have turned increasingly bearish over the last several trading days. The MACD is providing a sell signal, gold has broken below trend line support and the candlestick pattern from early June foreshadows downside. Near-term support comes in at 918.55, the high from April 27, followed by the psychological 900.00. Resistance will emerge at Friday’s close of 939.30.
Pivot – 937.72
Primary Support (Buy) – 917.13
Primary Resistance (Sell) – 949.63