Gold Daily Commentary for 4.23.09
Gold is overcoming the opposing downward forces and is fighting with April 15 highs and the key psychological $900/oz level. The recovery in the precious metal is pretty incredible and the rally could really take off should gold climb comfortably above $900/oz.
The negative correlation with U. S. equities is in full swing and the precious metal is trading above our 3rd tier downtrend line after weaker than expected existing home sales and weekly unemployment claims. However, we don't expect bears to let gold get past $900/oz so easily.
Therefore, the precious metal is entering what could be an intense battleground as investors lay stakes on trend. Hence, we wouldn't be surprised to see volume pick up today. Gold's psychological dilemma reflects a growing uncertainty in the S&P futures.
Should investors commit to a $900/oz+ reality they would also be turning their backs on the rally in U. S. equities. As a result, the next two trading days could prove to be critical as for as the near-term trend for markets is concerned. Fundamentally we find resistances of $900.41/oz, $903.83/oz, $905.85/oz, $907.64/oz, $909.66/oz, and $913.47/oz.
To the downside, we see supports of $897.24/oz, $894.37/oz, $890.64/oz, $887.91/oz, and $885.44/oz.
Gold is currently trading at $897.55/oz.
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