-- Posted Wednesday, 10 June 2009 | Digg This Article | | Source: GoldSeek.com

Aug Gold:  Open= 955.8 High= 966.7 Low= 947.6 Last= 955.6 +0.9

Gold bulls cannot be happy with the way the US dollar held firm in the wake of today’s 10-year note auction.  While the bid-to-cover was relatively strong at 2.62, the yields hit as high as 3.99%, suggesting that the government had to sweeten the pot to entice lenders.  This does corroborate ideas that investors are shying away from longer term debt in favor of short term debt, like the 3-year auction yesterday, which went off smoothly.

Not even bullishness in the energy sector could spill over into gold today, as rallies above $960 an ounce continue to be sold into for the third day in a row.  Shallow support at $950 is holding but the market has not exuded much bullish confidence, appearing to simply waffle at these price levels.  This suggests prices need to move lower in order to find better buying interest or a resumption of the downtrend in US dollar is required to spur more gains.

A sustained drop below $950 will move the next price target down to the $930 area, which is the 50% retracement level for the April to June rally.   Bulls should be patient here and wait for lower prices before buying or a close above $970.   

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-- Posted Wednesday, 10 June 2009 | Digg This Article | Source: GoldSeek.com

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