Little changed on the chart pattern as a result of yesterdays activity apart from the predicted cross of the 9 and 40 day moving average. This event backed up the bullish technical picture whilst keeping the pennant formation in tact. The technical upside target is still in the $900 region and profit taking ahead of the week would target eventual support below between $760 -$770. Overnight Asian markets have been quiet keeping the price in a very tight range. Fundamentally there was good news in the form of the world Gold council report reporting increased Q3 demand in China , India and the Middle East . Speculation that the U.S. Federal Reserve will cut their key lending rate from %1.00 to %0.75 in early December to bolster growth is also heavily weighing on traders minds. The inverse correlation between the Dow and the Dollar that has been experienced of late may not last forever in the wake of huge fiscal stimuli and falling interest rates. If the market falls out of love with the dollar I feel that the outlook for Gold, Silver and commodities is very positive due to real term value and the re-emergence of safe haven status.
The short term trend is bullish, medium term sideways and long term trend remains bearish.
Support: $810.50 (yesterdays low) Resistance: $832.35 (high of 25th November)
Support: $807.95 (low of 26th November) Resistance: $823.23 (high of 26th November)
Support: $802.00 (low of 25th November) Resistance: $817.60 (yesterday’s high)