Gold Daily Update – Thursday 20 August 2009
Posted August 21, 2009on:
Gold opened at 942.50/943.50 in New York. The metal slipped downwards to its intraday low of 936.50/937.50 ahead of worse than expected initial jobless claims numbers. Better than expected Philly Fed Index numbers had a benign impact on gold. The metal traded erratically and rebounded from its lows on the back of rallying EUR, finding good support near 940.00. It was later well bid and climbed higher, peaking at 942.75/943.75. The metal traded quietly towards the end of the day, closing at 940.25/941.25.
Gold pulled back to current 941 after running into sellers near 946 the last two days. Trend line resistance is seen at 948 with support down at 932. Price action in the past two months has formed into an interesting “Head and Shoulders” formation, with the “Neckline” seen at 932. A break of the Neckline should take us back down to the 905. A break of 951 would prove this formation false.
Pivot – 939.70
Primary Support (Buy) – 933.45
Primary Resistance (Sell) – 946.97