Gold is consolidating along with the major Dollar crosses as investors continue to decipher Wednesday's monumental rally. As we explained previously, Gold made a clear statement to the upside and Wednesday's move should carry over for the near-term.

Most interesting is whether gold will exhibit a positive correlation with U. S. equities. With gold in an uptrend and all equity correlations pointing to the upside, we will have to see whether equities can rally past the critical 800 level.

That being said, gold is presently trading just below our 2nd tier uptrend line with a 3rd tier hanging in the distance. We placed a new near-term downtrend line on our chart to exemplify the near-term obstacles the precious metal must overcome before catapulting towards a retest of the highly psychological $1000/oz mark.

Therefore, gold might continue to consolidate for the time being as it struggles with the psychological $950/oz area. Fundamentally we see resistances of $951.43/oz, $955.34/oz, $959.90/oz, and $962.51/oz.

To the downside, find supports of $948.17/oz, $945.88/oz, $942.62/oz, and $940.67/oz. Gold is currently trading at $950.15/oz.

Copyright 2009 FastBrokers, Latest Forex News and Analysis for Forex, Bullion and Commodity Traders. 

Disclaimer: For information purposes only. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. There is a substantial risk of loss in trading futures and foreign exchange.