Gold Daily Update – Friday 7 Aug 2009
Posted August 8, 2009on:
Gold opened at 962.00/963.00 and quickly climbed to its intraday high of 966.00/967.00 shortly after the open. This upward move was reversed as better than expected non-farm payrolls data drove the USD to strengthen, causing the metal to tumble to its intraday low of 953.50/954.50. The equities and oil rallied taking the metal along for the ride, hitting resistance near 967.00. Gold ticked lower as investors stepped away and traded range bound as the session unwound, finally closing at 957.00/958.00.
Gold ran out of gas this week on the topside closing at current 955. The weekly graph shows as a Gravestone Doji, after a 3 week up move, that started down near 905. These formations are symbolic of all the bulls that died in battle and warns of a trend reversal. A lower close next week would confirm the turn of the trend. The whole price formation over the past 7 months is slowly moving deeper into a triangle formation. Line drawn off the all time 2008 record high 1032 and 2009 high 1006 comes in at 993, just above our June high of 990. Line drawn off the April low 865 and July low 905 comes in at 918. Historically triangles resolve to the direction of the trend (up) but this could take some time to play out. In the short term, we are bullish Gold while the 950 level holds- quick to exit the position considering
the weekly price warning.
Pivot – 960.21
Primary Support (Buy) – 948.75
Primary Resistance (Sell) – 966.85