2nd december Gold Trend Analysis

Last nights web update listed 1747-1759 as resistance and the high so far is 1763. Support was listed at 1727-1737 and the low so far today is 1738.

Trades — Currently long Gold from 1735 spot or 1738 Feb — Keep stop the same as web.
Currently long Silver from 33.02 Basis March ——-Keep stop the same as web.


London Gold Fix $1,751.00 +$1.00

With global equity markets initially higher, Euro zone news overnight relatively calm and expectations for positive growth news from the US, the gold market was seeing a mostly favorable commodity market environment to start today.

Gold might have been somewhat undermined by news overnight of a slight waning of seasonal demand in India, but in the short term, big picture macro-economic views are likely to dominate over regional gold demand news stories. In short, the gold market will probably focus on the US payroll data for the initial morning trade today but the numbers are not strong. It is possible that the afternoon trade might focus on the potential weekend developments from meetings between key Euro leaders. While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally higher this morning. US equity markets will open with decent gains later on today. The US Dollar is unchanged against most of the major’s this morning, though it posting a small gain versus the Yen. French President Sarkozy called for a new EU Treaty to include tougher budget rules and creating a new European Monetary Fund. German Chancellor Merkel stated that resolving the EU sovereign debt crisis is a process that will take years to complete. Euro zone PPI during October was up 5.5% year-on-year, in line with expectations. UK Construction during November was at 52.3, slightly above forecasts. Major US economic numbers to be released this morning include November NFP which came in at 120K jobs and unemployment went from 9% to 8.6% ——- The 8.6% number is gov’t fudged numbers and not a true look at USA econony. AT THE MOMENT — I’m undecided if I hold my positions over the weekend. If I don’t —i wlll set out an email update.

Going to the Charts

Gold reached the upper level resistance area’s for the week. Today’s twist was a sustained move up into the NFP reports and has been selling off since the report. Resistance for the remainder of the day is 1756-1766 and support is the 1733-1743 area. This mornings push above 1760 was short lived and we want to remain cautious now as a pullback towards 1745-1750 has dampened spirits somewhat. In summary — Unless we close below 1725, the trend will still be up. But be careful neaer 1750. IF I don’t email, it means i’m holding the metals over the weekend. In summary Silver is neutral and in a trade range.



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"For a mountaineer, the important things are the effort, the posture and the muscles. The rope that holds him serves no purpose when everything works but it gives him a sense of security. In the same way, all gold does is ensure confidence; it's a safe haven."