Gold prices closed higher again benefiting from a nose diving US dollar as financial analysts continued to debate the FED rate cut and the implications for longer term and the effect this will have on current monetary policy. As I mentioned before the upward move in the gold is supported not only by continuing weakness in the greenback, but also new buying as a hedge against inflation. With near zero interest rates, massive government spending, talk of quantitative easing on a daily basis and an incoming administration likely to stay on the same path, some traders are starting to suggest that this is just the beginning for a long bull run in gold prices.

The short and long term trends are bullish while medium term trend is bearish.

Support:    $845.90 (yesterday low)                                     Resistance: $900.00 (psychological level)

Support:    $829.40 (low of 16/12/08)                                   Resistance: $891.32 (high of 07/10/08)

Support:    $823.66 (9 day moving average)                              Resistance: $882.50 (yesterday high)