-- Posted Wednesday, 8 April 2009 | Digg This Article
| Source: GoldSeek.com
June Gold: Open= 884.6 High=891.7 Low=879.2 Last= 881.5 -1.8
Gold prices tried to rally last night but failed to hold the move above $890.0. The market would rally back by mid-morning and challenge that $890 level once more but would no more than slide back to near $886 into the close. Prices continued to weaken in after-hours trading.
In the past two months, gold has fallen back roughly $115 an ounce, in two waves of more than $70. Going back to the low from November of last year to the high made in February, gold prices have retraced about 40% of that move in the past two months. It could be possible that the current pulse down is part of a two-wave correction in an overall bull trend.
Gold bulls will need to see a new impetus to get this market back on a bullish bias. Whether it is a further breakdown in the US dollar index or for inflation to quickly make a comeback, but anticipation can quickly turn tiresome and that is what is currently seen in the market.
The next downside target for gold is near $860, which would be a 50% pullback. A retracement to the 61.8 Fibonacci level would be to the $820 level. Resistance is found at $890, $895, and $914.
Review charts on these markets here www.britefutures.com. Remember that futures and options can be used for bullish or bearish positions; feel free to contact me to discuss trading strategies. Each contract/option = 100 ounces, a $1 move in a futures contract = $100.
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-- Posted Wednesday, 8 April 2009 | Digg This Article | Source: GoldSeek.com
