Hi everyone and welcome to the new trading week for gold and silver. On Friday we saw heavy selling in gold following weaker than expected US payroll numbers ( which were truly dreadful) and this is turn added to an already strong deflationary sentiment. The downtrend was also helped by the fact that as stocks decline funds are forced to close their positions to meet margin calls. Later in the session gold prices recouped some of the losses on short covering, but further concerns about more job cuts related to the car industry are likely to maintain pressure on gold for the short term. The short and medium term trends sideways and long term trend remains bearish.
Support: $740.60 (low of 05/12/08) Resistance: $819.00 (high of 01/11/08)
Support: $735.90 (low of 11/09/08) Resistance: $783.97 (9 day moving average)
Support: $715.95 (low of 31/10/08) Resistance: $783.54 (14 day moving average)