Hurricanes and Jackson Hole.....Are The Gold Bulls Back in Charge?

While the news of Hurricane Irene hitting the northeast and Ben Bernanke speaking from Jackson Hole Wyoming dominate the news gold bulls are quietly trying to take momentum back from the grips of the bears. And they just might be able to pull it off.

Gold was higher in overnight trading due to short covering as it rebounds off the 20 day moving average crossing at 1750.70. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term while many traders see the 4 hour MACD crossing above the signal line as proving that a temporary low is formed at 1705.4 and intraday bias has turned neutral.

Closes below the 20 day moving average crossing at 1750.70 would confirm that a short term top has been posted while opening the door for additional weakness in to early September. Closes above the 10 day moving average crossing at 1805.20 would signal that a short term low has likely been posted.

First resistance is the 10 day moving average crossing at 1805.20. Second resistance is Tuesday's high crossing at 1915.00. First support is Thursday's low crossing at 1701.70. Second support is the 38% retracement level of this year's rally crossing at 1686.80. Gold pivot point for Fridays trading is 1748.70.