Gold Trends Intra Day Gold Update – Feb 28th courtesy of Bill Downey at Gold Trends.net

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In last nights website update initial resistance for gold was listed at 1417-1424 and the high so far is 1416.50 —- support was listed at 1388-1393 and the low so far is 1417.50

London Gold Fix $1409.75

Talk that unrest was being seen in Oman overnight added to the uncertainty flowing from the Middle East and that in turn seems to have provided the gold market with some support. Rumors that Egypt banned the export of gold haven’t been officially confirmed but that type of talk in conjunction with news that Vietnam might move to ban gold bullion trading, seems to reconfirm the safe haven importance of the yellow metal in the current environment.

Many in the trade are looking ahead to upcoming dialogue from the US Fed Chairman, as the turmoil in the Middle East might prompt the Fed to go ahead and deploy the remainder of QE2 rather than risk slowing at the hands of high oil prices. Comex Gold Stocks were 11.077 million oz’s down 3,036. Stocks have declined 13 of the last 20 days. The Commitments of Traders Futures and Options report as of February 22nd for Gold showed Non-Commercial traders were net long 213,250 contracts, an increase of 13,825 contracts. The Commercial traders were net short 266,791 contracts, an increase of 19,614 contracts.

The Dollar is weaker during overnight trading, although posting a small gain against the Yen. President Gaddafi of Libya has continued to hold power, even with rebel forces in control of additional cities over the weekend. The new ruling coalition in Ireland will attempt to renegotiate the terms of their recent EU bailout. Euro Zone inflation during January was up 2.3% year-on-year, lower than expectations.

On the gold chart below — the upper dotted trend line continues to be the main pivot point for the short term. We can see that price continues to vacilate at that area again today. With the last trading day of February in play — both sides are in a stalemate this morning and the bears would like nothing better than a close below 1400 to end the month. A new bar begins on the monthly charts tomorrow — and the 1420-1435 area is an important area on that chart.

SUPPORT FOR THE REMAINDER OF THE DAY IS THE -1403-1408 area and resistance is the 1416-1422 zone. The upper dotted trend line is the pivot –and so far —- there is buying just under that line.

In summary – it comes down to the trend line —-and the battle that is waging there. The range so far is 1407-1417 — a tight 10 dollar range. The bulls still have the advantage — look for support at 1403-1408. Once the next move is underway —- it looks like first resistance will be the 1422-1435 area. As long as price remains in the mini red channel — the trend remains up.

Reference Charts are available at Gold Trends.net