Gold continues to drift downward, sliding below our 2nd tier uptrend line. However, the precious metal has yet to make a drastic move to the downside considering the furious rally taking place on Wall Street.

Therefore, investors continue to display reluctance in dropping gold below our 3rd tier downtrend line and the highly psychological $900/oz level. Therefore, the uptrend lives to see another day.

On the other hand, if the precious metal should sink below the previously mentioned critical fundamental supports, we would expect a heightened near-term selloff.

Fundamentally, our $922.92/oz support turns resistance while we hold our resistances of $928.57/oz, $932.04/oz, and $932.42/oz.

To the downside, we maintain our supports of $919.01/oz, $913.80/oz., $909.89/oz. with fresh bottom-end support of $905.52/oz.

The $900/oz level serves as a psychological cushion to the downside.

Gold is currently trading at $919.70/oz.

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

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