Gold Review for Thursday 4/29/09 By: Thomas Hartmann, Altavest Worldwide Trading, Inc.
-- Posted Wednesday, 29 April 2009 | Digg This Article | Source: GoldSeek.com
June Gold: Open= 894.0 High= 904.0Low= 888.3Last= 899.6 +6.0
Swine flu, bank stress-test worries, and a horrid 6.1% contraction in first quarter GDP kept the US dollar on the defensive today and gave gold a small boost.Despite the large drop in first quarter GDP, which mirrors the 6.3% drop during the fourth quarter of ’08, there was a gleaming silver lining.Business inventories were drastically reduced, giving hopes that companies will be better situated for the rest of the year.Illiquid inventory is a major drag on businesses and the ability to slough off products quickly is a good sign.
Gold bulls should continue to be patient and wait for prices to break the downward sloping trend-line.Aggressive bulls received their chance to buy weakness today on a dip below $890, but those lows must hold or the risk of another leg down would appear quite likely. Prices bounced off of the $890 support level but only managed an inside-day on the charts, which doesn’t turn the trend up.The bias would have to go to bulls due to recent dollar weakness and the ability of stocks to reach fourteen week highs amidst less than stellar conditions this week.
Since the short-term trend in gold is down, and still can be defined as a correction, bulls ought to wait for confirmation of strength before getting long.Buyers should be looking for a close above $916 before getting long.A break below the double-bottom at $865 would suggest a leg down towards the $820 level.
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.
To open an account and receive trading recommendations on gold futures or options contracts (also stock indices, energies, currencies, etc.), or to use our online paper trading service BriteTrak,contact me attom@altavest.com. Visit www.altavest.com to request a FreeTrading Kit. Keep in mind that there is risk of loss in all trading.
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