Gold Daily Update – Monday 6-July-2009
Posted July 7, 2009on:
Gold lost ground overnight and opened at 922.75/923.75 in New York. Slumping equity markets and weaker oil prices inspired light selling as the session began, dipping to an intraday low of 919.75/920.75. However it later became well bid and climbed in front of the London fix, peaking at 925.50/926.50. Profit taking took it lower, but traded within a range as the market was very thin, finally settling at 923.50/924.50.
Gold, after reaching its 990.00 high on June 3rd, it has lost 7%, however over the last three weeks the metal has been fairly range bound – trading between 913.24 and 948.48. The back and forth price action reflects some indecision within the market and cautions that a break-out is approaching. A break below 917.80 would foreshadow further downside, while a break above 939.80 would open up a test back up to 990.00.
Pivot – 926.58
Primary Support (Buy) – 918.89
Primary Resistance (Sell) – 932.41