Gold Daily Update – Wednesday 02 September 2009
Posted September 3, 2009on:
Gold opened on its low at 956.50/957.50 and quickly rallied on strong investor demand, finding resistance near 965.00. It ticked sideways within a range on light trading during the London fix. As the session progressed the metal became well bid once again, triggering stops, peaking at 979.75/950.75. It retreated marginally as the day unwound, finally settling at 976.50/977.50.
Gold has finally broken out of the topside of our 3 month consolidation triangle at 965. The metal is up $21 on the day to current 977. We expect a good extension on this move with 991 (May high), 1006 (2009 high) and possibly 1032 (2008 high) as technical targets. We expect the market to buy any dip now to 960/965 with only a close back below 950 removing the bullish sentiment.
Pivot – 968.30
Primary Support (Buy) – 956.10
Primary Resistance (Sell) – 990.05