Gold Daily Update – Monday, 3 August 2009
Posted August 4, 2009on:
Gold climbed during the London session on the back of rallying equity markets, weaker USD and stronger oil prices to open at 958.50/959.50 in New York. It traded erratically during the early morning, slipping lower, finding support near 957.00. It gathered momentum as the dollar continued to soften and equity markets strengthened. It remained well bid on investor demand, carrying the metal to an intraday high o 962.25/963.25. However heavy profit taking as the day unwound, dragged gold to a low of 954.50/955.50, before settling at 956.75/957.75.
Gold traded through the Fibonacci resistance level at 960 on its way to a New York Session high of 962.25/963.25. Expect further scale up selling from 962.25/963.25 to the European high around 964.50. There will be further resistance in front of 968.00 but a break through should set the sights on the June high around 990.00. Near term support lies from today’s low around 955.00 down to 946.00.
Pivot – 950.47
Primary Support (Buy) – 938.43
Primary Resistance (Sell) – 968.37