Gold Daily Update – Monday 24 August 2009
Posted August 25, 2009on:
Gold opened on its highs at 955.00/956.00 and traded lightly within a range during the morning. It slipped marginally as the day ticked sluggishly towards the close, finding support near 950.00. However as the session unwound equities slumped and the metal was sold off, triggering stops and swept to an intraday low of 935.00/936.00. It quickly bounced off the lows and climbed above 940, finally settling at 941.50.942.50.
Gold erased most of the prior day’s gains, however was unable to break out of Friday’s range. We do not foresee anything that should push gold out of its recent narrowing range (925.90 to 971.68). Technical studies are generally neutral as the RSI is at 49, the MACD is close to zero and there is no clear trend. For now, we think gold will continue to range trade. Near-term support is found at the 100-day moving average of 930.53, while resistance comes in at Friday’s high of 957.05.
Pivot – 945.84
Primary Support (Buy) – 933.62
Primary Resistance (Sell) – 953.62