Gold Market Commentary For Friday Morning Sept. 16th

Gold was higher due to short covering in Thursday evenings overnight trading session as it consolidates some of the decline off last week's high. Stochastics and the RSI remain bearish hinting that a short term was achieved and a double top formed.

If December extends this month's decline, the reaction low crossing at 1705.40 is the next downside target. Closes above Wednesday's high crossing at 1848.20 would temper the near term bearish outlook.

First resistance is Wednesday's high crossing at 1848.20. Second resistance is last Tuesday's high crossing at 1923.70. First support is the overnight low crossing at 1765.40. Second support is the reaction low crossing at 1705.40. Gold pivot point for Friday morning is 1795.40.


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Gold Market Commentary For Thursday Morning

Gold was lower in Wednesday evenings overnight trading due to light profit taking as it consolidates some of the rebounds off last week's low. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are likely near term. And those higher price moves should meet strong resistance at the August high crossing at 1915, limiting the upside move and bringing continued consolidation.

Closes below last week's low crossing at 1701.70 would confirm that a top has been posted while opening the door for a larger degree decline during September. First resistance is August's high crossing at 1915.00. First support is last 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 Thursdays trading is 1829.30.

Gold Market Commentary For Wednesday Evening

Gold closed lower on Wednesday and spiked below support marked by the 20 day moving average crossing at 1095.10. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 1095.10 are needed to confirm that a short term top has been posted. If April resumes this month's rally, the reaction high crossing at 1142.90 is the next upside target.

This evenings pivot point, our line in the sand is 1098.50

First resistance is Monday's high crossing at 1131.50
Second resistance is the reaction high crossing at 1142.90

First support is the 20 day moving average crossing at 1095.30
Second support is today's low crossing at 1090.20


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Gold Market Commentary For Tuesday Evening

February gold closed higher due to short covering on Tuesday as it consolidated some of last week's decline. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are becoming oversold but remain bearish signaling that sideways to lower prices are possible near term.

If February renews last week's decline, December's low crossing at 1075.20 is the next downside target. Closes above the 20 day moving average crossing at 1118.50 are needed to confirm that a short term low has been posted.

Tuesday evening pivot point for gold is 1095.43

First resistance is the 20 day moving average crossing at 1118.50
Second resistance is the reaction high crossing at 1141.70

First support is last Friday's low crossing at 1081.90
Second support is December's low crossing at 1075.20

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Gold Continues in C Wave Down

From guest blogger David Banister....

1. I predicted on December 4th for my partners that Gold could pullback to the 1040 to 1070 US ranges, with a mimimum of 1070 likely. So far the Gold pivot lows have been to 1074, bounced up, re-traced to 1090, ran to 1145, re-traced to 1090 again. I got the partners in my service us out of several gold positions issuing take profit alerts on the B wave bounce to 1135 recently, and we have held a few. We sold our ICI.TO, JIN.TO, and AAU at much higher levels and remain out of those positions.

2. Gold now appears to be in the C wave down in this corrective pattern from the Dec 3 highs. It appears to me the $1040 US target is more likely now, and possibly lower. I have a GLD ETF chart below.

I see a Gap at 102.50 on the GLD chart, and there is a chance that will fill. This would represent a 50% Fibonacci pullback of the entire advance from April 2009 into December 2009. A 61% retracement would push Gold even lower towards the 97-98 areas on the ETF. I would not be going long Gold right now until we see the patterns complete. I would also avoid going long Gold stocks just yet. They will bottom before Gold bottoms, but the timing is still off.

The dollar is likely to bounce a bit further and a break over 79 on the Dollar to the upside certainly leads to another leg down in Gold.

With that said, we will monitor some Gold stocks for some washout pivot lows to possibly trade into at the right time. I have avoided getting back into GSS for example because the chart is not yet right.



Make sure to visit David at Active Trading Partners.

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