{"id":2234,"date":"2009-06-02T10:32:45","date_gmt":"2009-06-02T15:32:45","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2234"},"modified":"2009-06-02T10:32:45","modified_gmt":"2009-06-02T15:32:45","slug":"gold-finds-comfort-in-our-2nd-tier-downtrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/02\/gold-finds-comfort-in-our-2nd-tier-downtrend-line\/","title":{"rendered":"Gold Finds Comfort in Our 2nd Tier Downtrend Line"},"content":{"rendered":"

By Fast Brokers<\/span><\/p>\n

Gold continued Monday\u2019s pullback on declining volume has investors locked in profits from the precious metal\u2019s nice run.\u00a0 Since volume fell with price, we don\u2019t view yesterday\u2019s selloff as significant and gold is presently finding support on our 1st tier downtrend line.\u00a0 The precious metal has outperformed as of late, putting on an impressive show and clearing the way for a breakout in the S&P futures due to their positive correlation.\u00a0 In fact, the S&P set new 2009 highs yesterday.\u00a0 It appears as if it is the S&P\u2019s turn to lead way as investors look to make a statement by following through on Monday\u2019s key fundamental step.\u00a0 Gold has a few challenging obstacles to overcome in the near-term, the most important being our 3rd tier downtrend line and the highly psychological $1000\/oz level.<\/p>\n

Gold will need a strong confirmation from the S&P and continued depreciation of the Dollar to have a chance of leaving $1000\/oz behind.\u00a0 Until our 3rd tier downtrend line is breached, the possibility remains that gold could duck back into its medium-term downtrend line.\u00a0 However, this attempt to beat $1000\/oz seems more promising than gold\u2019s last try in February.\u00a0 Both the GBP\/USD and EUR\/USD made fundamental bull statements a while back and the global economic recovery is gaining steam.\u00a0 Furthermore, crude has been on a tear as investors worry about future inflation.\u00a0 Gold has traditionally served as a reliable inflationary hedge.\u00a0 Therefore, we maintain our bullish outlook trend-wise unless the precious metal should make a fundamentally significant move to the downside.<\/p>\n

Fundamentally we find resistances of $978.11\/oz, $980.56\/oz, $983.25\/oz, $985.33\/oz and $987.29\/oz.\u00a0 To the downside, we see supports of $975.81\/oz, $972.34\/oz, $970.35\/oz, $967.81\/oz, and $964.89\/oz. Gold is currently trading at $977.30\/oz.<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/a>.<\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – Gold continued Monday\u2019s pullback on declining volume has investors locked in profits from the precious…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-2234","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=2234"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2234\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}