Gold Daily Update – Thursday 27 August 2009
Posted August 28, 2009on:
Gold opened at 948.25/949.25 and traded erratically in a range, touching an intraday high of 950.25/951.25 . Slumping equity markets and weaker oil inspired investors to sell the metal. Support was found near 945 but it remained offered and slipped to an intraday low of 941.00/942.00. Gold recovered from the lows as both oil and equity markets made back lost ground, finally closing at 945.50/946.50.
Gold tried to head higher today but stalled at 950. Our current 949 is technically an Up day but nothing to inspire any new directional bets. We continue to move deeper into a consolidation triangle. Price action of the last two months appears to be a head and shoulders formation with major Neckline at 933. A move below 933 will bring in sellers. With August lower tops of 971, 960 and 957 the unit will have to clear out 960 to bring in fresh buying. Sideways price action is our current call.
Pivot – 946.74
Primary Support (Buy) – 942.79
Primary Resistance (Sell) – 953.10