Gold Daily Update – Wednesday 12 Aug 2009
Posted August 13, 2009on:
Gold opened at 945.00/946.00 and retreated as the session started, dipping to 942.00/943.00. Rallying equity markets and stronger oil helped the metal recover, finding resistance near 950.00 and it traded lightly within a narrow range. However the metal became well bid, and quickly push through 950, peaking at 952.00/953.00. The market later went very quiet in front of the FOMC rate decision, finally settling at 949.75/950.75. As expected the rate was left unchanged and gold tumbled, finding support near 945.00.
Gold’s 50-day once again coming to the rescue in support of the metal, though we did end up trading marginally higher on the day. Even so, the market’s indecision provides us with more warning as another “outside day” has been recorded on the daily candlesticks. The 38.2% Fibonacci generally continues to hold off of the primary base from the April lows. Additionally, despite the fact that gold has traded very weightily over the past week, the metal is still holding near the middle of the one-month bull channel, with the bottom end of the channel coming in near $930.50 today, providing further support should gold collapse through the 50-day.
Pivot – 946.17
Primary Support (Buy) – 940.03
Primary Resistance (Sell) – 952.08