Gold Trend! 29-09-2011

Gold Trend! 29-09-2011
Technical

R2=1696.49

R1=1642.61

PP=1615.52

S1=1561.64

S2=1534.55

Yesterday, gold registered a decline of 44.35$ and closed at 1606.19$. The current formation in a chart shows a bearish signs. Further, the 100-DMA is looming ahead which will restrict the upside move at 1666$. If the decline extends further, the likely target will be at the 200-DMA crossing at 1562$. The MACD has continued with its downward trend supporting the bearish view.Gold is still in selling pressure and next down side targets are $1562, $1556,$1530 and $1465.Gold above $1630 next target will  be $1644,$1653 and $1665 I suggest investors to stay sellers on the higher side, keeping stoploss above the 100-DMA. The support and resistance are present at 1597.8$ and 1641.6$, respectively.

Fundamental:
Gold climbed, as concern that European leaders may not stem the region's debt crisis hurt equities and commodities, reviving demand for the precious metal as a haven..The Europe only seems to be getting worse. Growth in demand is coming from India and China. The slump in prices from record will fuel demand during the festival seasons in India. The peak demand period began last month with Eid, continues in October with Diwali and is followed by the traditional wedding season.

 By

M.Zohaib Gadit

Forex Trading Consultant