Yesterday’s gold market closed on a higher note building on last weeks gains, and it came as no surprise that the 9 day moving average crossed above the 14 day moving average, thus giving us another bullish signal for gold prices moving forward. The main driver was a sharp drop in the US dollar as a result of reports showing industrial production in continuing decline, and the US assets losing their appeal in the eyes of foreign investors. Consequently gold prices reached two-month highs, and it seems that safe-haven buying could potentially kick in before a reignited inflation becomes a widespread evident. The short and long term trends are bullish while medium term trend is bearish.
Support: $819.90 (yesterday low) Resistance: $856.50 (high of 15/10/08)
Support: $807.05 (low of 12/12/08) Resistance: $848.50 (high of 16/10/08)
Support: $801.60 (low of 11/12/08) Resistance: $842.82 (yesterday high)