In line with the last few days, gold saw the same tight range yesterday. Initially gold prices moved up crossing the 14 day moving average, but then retraced, closing lower on the day mainly due to funds liquidating their position. Although on the short term the gold price is likely to remain under pressure the long term picture is completely different with governments forced to increase the borrowings and these actions are bound to reignite the inflation at some point in the future. The short and medium term trends sideways and long term trend remains bearish. I note this morning however that Merrill Lynch is forecasting gold to reach $2000 some time next year!
Support: $761.45 (low of 02/11/08) Resistance: $819.00 (high of 01/11/08)
Support: $735.90 (low of 11/09/08) Resistance: $791.12 (9 day moving average)
Support: $715.95 (low of 31/10/08) Resistance: $787.72 (yesterday high)