Gold Daily Update – Tuesday 4 Aug 09
Posted August 5, 2009on:
Short covering before the session began carried the metal higher to open in NY at 954.75/955.75. Personal Income and Spending numbers both came in near expectation, having a beginning impact on the metal. Oil and base metals later reversed, climbing towards positive territory and gold followed, finding resistance near 965.00. However it remained well bid on the back of investor demand, peaking at 969.50/970.50. The dollar went on the offensive and oil retreated, inspiring light profit taking as the trading day unwound, finally settling at 966.70/967.70.
Gold at current 964 level is finally closing above 23.6% Fibo level resistance of 960. This opens the door for a return to 990 June high. Long Gold positions will now exit below 950 on any failed up side moves. At current levels we are on our 4th up week since the correction to 905. Last weeks price action took many Gold bulls out of their positions making downside more supported on any dip.
Pivot – 962.23
Primary Support (Buy) – 953.97
Primary Resistance (Sell) – 973.07