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Gold Trends Intra Day Gold Update – Mar 3rd

In last nights website update resistance was listed at 1439-1445 and the high so far was 1436.20 — support was listed at 1418-1425 and the low so far is 1417.60

London Gold Fix $1430.50

In the early action today, gold is under some minor pressure.  Yesterday’s update suggest that a pullback into Thursday in the 1420-1425 area had potential to develop.  Gold pulled back slightly on talk of a possible Libyan Peace plan and perhaps because of slightly lower oil prices. With the US equity market stronger, overall tension in the marketplace would seem to be on the decline.

News of lower Turkish gold imports in the latest monthly figures might be adding to the negative overnight tone in gold prices, but that bias might be countervailed slightly by ongoing favorable gold investment dialogue inside China. It is possible that an ongoing dovish stance from the US Fed Chairman will provide some support for gold prices, as that reduces the near term fear that the US will join the ECB in battling inflation with tighter monetary policy as Trichet says that interest rate increase in Euroland next month is very possible. The US Fed remain on hold is keeping the US Dollar generally weak and is making new lows this morning. At least in the short term, the payroll report due on Friday may keep gold in a sideways pattern a bit longer.

The 1415-1420 area is first support today in gold. Resistance is the 1436-1444 area.  On the gold chart we discussed a pullback from the upper red channel towards the lower one and that is what is developing today.   If the 1415 area doesn’t hold — the potential to test the 1405-1410 area at the upper dotted trendline — or lower red channel line still has potential.

In summary — gold is in a minor pullback into today and potentially into tomorrow morning.  The potential for the pullback to last longer cannot be eliminated at this time — were going to have to watch the action.   As long as price is in the red channel — the trend is still up but — this area of time and price keeps us a bit cautious here.   Lets see if gold can hold 1415-1420 or if it needs to go test the lower red channel line.

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Thanks to Bill Downey of GoldTrends.net – visit for graphs and charts