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Gold Trends Intra Day Gold Update – Mar 2nd

In last nights website update resistance was listed at 1434-1444 and the high so far is 1438.   Support was listed at 1418-1425 and the low so far is 1427.50.

The London Gold Fix was $1430.50 +16.50

As we’ve discussed on the website,  the situation in the Middle East has not resulted in a move to quality flow toward the Dollar and that in turn has seemingly increased the move to quality flow toward gold and other precious metals markets. While the overnight gains in gold weren’t overly impressive, prices remain at all time highs, which in turn has kept the media buzz in the gold.

The perfect storm for gold continues and the addition of excalating oil prices,  geopolitical unrest in the Middle East — and a US Dollar that is just barely hanging on continue to push investors towards gold and silver.

While it might be premature to focus on the possible events of March 11th, it could be difficult to tamp down the threat of further Middle East tensions until after the day of protest in Saudi Arabia has past. News of protests in Iran yesterday seemed to unnerve the US equity markets and that highlights the presence of high tension in a number of markets.   Libya keeps oil in the headlines today.

Comex Gold Stocks were 11.147 million oz’s up 71,800 oz’s. Gold stocks have declined in 13 of the last 20 days.

The US Dollar is slightly weaker against most of the major’s during overnight trading, although posting a gain against the Yen.  China has set a plan to allow import and export firms to settle their transactions in Chinese Yuan by the end of this year —- and the NEED FOR THE US DOLLAR— CONTINUES TO PLUMMET.

Euro zone Producer Prices during January were up 1.5%, higher than forecasts and the largest single-month rise. US economic numbers to be released. Fed Chairman Bernanke will give a monetary policy report to the Senate Financial Services Committee at 10:00 AM EST. The Fed’s Beige Book of economic conditions will be released at 2:00 PM EST.

From a chart perspective gold is nearing the upper red channel line and resistance — where the 1439-1444 is resistance for the remainder of the day.

US Fed Bernanke is testifying again today and that is just starting up.

As far as the next 24 hours — we would think that gold would be setting a price high today —and potentially pulling  back into Thursday or Friday morning towards the 1420-1425 area as a pullback.  It would take a  close above 1440-1444 to potentially eliminate a pullback and continue price higher.  In either event — that is the first important support area on any pullback in gold.    On my long position from 1406 —- i’m using 1396 as a stop.   In summary the trend is still up ——– and pullbacks to 1420-1425 is the area to watch for support.

In summary — as long as price is in the red channel line — the trend remains up.  A peak today with a slight pullback into Thursday/Friday could develop.

A CLOSE ABOVE 1442-1444 WOULD ADD TO THE BULLISH FUEL.

Thanks to Bill Downey

Check the charts at GoldTrends.net