Gold Daily Update – Friday 14 August 2009
Posted August 15, 2009on:
Gold opened on its highs at 958.00/959.00 and ticked lower as oil prices slumped. Equity markets quickly tumbled and gold remained well offered, tumbling to an intraday low of 941.75/942.75. It recovered only marginally and later traded within a range during the early afternoon, finally settling at 946.75/947.75. Silver also opened on its highs at 1505.00/1508.00 in New York. Good selling on the back of weaker base metals, copper and oil dragged the metal lower for much of the session. Support was established near 1470.00, but this level could not hold as falling equity markets inspired more selling, driving silver to an intraday low of 1459.00/1462.00. It made back lost ground on light trading as the day unwound, closing at 1473.00/1476.00.
Gold failed on a try to yesterday’s intraday high, though managed to remain above the supportive 50-day. This leaves gold with its first down candlestick on the weeklies in five weeks. Still, trend support remains in play, a well established weekly trend that has held since late October of last year. Support is close however, and comes in at $932.40. There is definite downside risk, despite gold’s uptrend, as momentum seems to be petering out. Still, gold bulls should be buying at $940 should the metal dip there with gentle momentum; more rapid charges at that price point would raise strong warning flags.
Pivot – 951.59
Primary Support (Buy) – 938.59
Primary Resistance (Sell) – 960.69