GOLD: While Gold still retains its broader bullish structure in the medium term, a convincing halt in its declines triggered off the 989.97 level, representing its Jun 03’09 high will have to be seen to activate that uptrend. In order for this to happen, its bottoming process started from its hammer formation the past week will have to hold and a break above its recent recovery high at the 948.22 level, its Jun 26’09 high must occur. This view if validated will open the door for additional higher prices towards the 965.35 level, its Jun 10’09 high with a decisive break above there allowing the metal to target its Jun 03’09 high at 989.97.Beyond the latter will put the metal in position to challenge the 1,005.98 level, its Feb 20’09 high. To the downside, nearby support is seen at the 923.45 level, its Jun 30’09 low ahead of the 915.07 level, its May 18’09 low where a cap is expected. However, if that level gives way, declines could be seen towards the 904.70 level, its daily 200 ema followed by the 880.15 level, marking its May 01’09 low. On the whole, while Gold still maintains its overall medium to longer term uptrend, it is now challenged by nearer term corrective pullbacks.

Daily Chart: GOLD

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which the author incur any responsibility. The does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report

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