After an initial decline following the auto bailout failure, gold prices managed to regain the lost ground as it turned out that stock markets declines at the opening were much smaller than anticipated. The intraday reversal was also helped by a decline in the US dollar which seems to act as good support for gold. This morning the precious metal appears to be continuing its upward trend, building on last week gains and the outlook is positive given that President elect Obama is determined to increase US debt in order to fund economic rescue plans. The short term trend is sideways, medium term trend is bearish while long term trend is bullish.
Support: $807.05 (Friday’s low) Resistance: $834.80 (high of 11/12/08)
Support: $801.60 (low of 11/12/08) Resistance: $832.35 (high of 25/11/08)
Support: $794.08 (14 day moving average) Resistance: $829.62 (high of 24/11/08)