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Gold Trends Intra Day Gold Update – Mar 4th

In last nights website update resistance was listed at 1422-1427 and the high so far is 1422. Support was listed at 1403-1409 and the low is 1413.

London Gold Fix $1418.00
April gold price lows are about $23 below this week’s highs as margin increases may have caused the sharp drop. Some players might suggest that gold has also started to factor in a slight increase in US rate increase fears, as the trade has seen evidence of an improving economics in the US statistics this week.

However, to really rekindle talk that US QE2 will be ended prematurely might require clear cut evidence of an improving employment market, as that has clearly been the focal point of US Fed leadership. This mornings numbers were ok and the jobless rate dropped to 8.9% in USA.

Libyan rebel forces are reportedly pushing toward Tripoli and also toward a key Libyan oil port and that could leave a measure of geopolitical uncertainty in place off the Middle East situation. There is some prospect of a Gaddafi exodus and with the rebels seemingly operating without much restriction it is possible that gold traders will continue to lean toward extracting a move to quality premium ahead of the weekend.

From a chart perspective — if gold closes below the 1399-1403 area it would be suggestive that the pullback could continue next week. A close above 1427-1430 would be suggestive that the uptrend could continue early next week.

Resistance is the 1422-1425 area and support is the 1407-1412 area today. Stops intra day are 1398 and 1403 on a closing basis.

In summary — gold needs to close above the upper dotted trend line today at the 1404-1408 area to keep things on a short term positive note. Closes above 1427-1430 will keep things positive into next week. Watch the lower red trend line and the upper dotted trend line today for potential support.

Don’t forget to use the graphs at source on GoldTrends.net

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