Gold Trend! 22-09-2011

Gold Trend! 22-09-2011
Technical:

R2=1831.01

R1=1807.74

PP=1793.21

S1=1769.94

S2=1755.41

Gold lost 21.90$ on Wednesday and closed at 1783.44$ with a decent market range of 37.80$. Currently,gold is trading slightly above the 50-DMA, any break below this level will initially target 1752$ mark, a 38.2% retracement on the rise from 1478$ to 1921$, which could later extend to 1703$. The 14-DMA and the MACD have continued with their declining trend indicating sideways to lower price movement is possible in the near term.Gold below $1785 will remain weak and next downside target will $1767 and $1752.I therefore suggest investors to ‘Sell’ at higher levels, keeping stoploss above the 15-DMA(1820). The support and resistance are present at 1769.60$ and 1804.88$, respectively.

Fundamental:
Gold held steady on Thursday under the pressure of a rising dollar, after prices fell more than 1 percent in the previous session when the U.S. Federal Reserve decided to twist its balance sheet more heavily towards long-term securities. U.S. existing home sales rose in August to their highest in five months as lower prices and rock-bottom interest rates drew more buyers into a still moribund market.
By
M.Zohaib Gadit
Forex Trading Consultant