Gold Trend! 30-09-2011

Commodities Market: Technical Outlook

 September 30, 2011

R2=1665.13

R1=1644.74

PP=1613.88

S1=1593.48

S2=1562.63

Yesterday, gold showed positive movement and ended higher at 1619.82$, up 13.63$. Despite a positive closing, gold registered a lower high and lower low indicating that the trend still appears to be bearish. The MACD and the 14-DMA have maintained their declining trend supporting the above view. If the gain extends further, the target will be at the 100-DMA standing at 1667$, however, any downside will be tested at the 200-DMA crossing at 1563$.I suggest investors to remain sellers on the higher side, keeping stoploss above the 100-DMA. The support and resistance are present at 1600.5$ and 1635.7$, respectively

Downside Target:$1590,$1565,$1535,$1480,$1465.

Fundamental:
Gold jumped more than 1 percent on Friday after Germany's approval for expanding the euro zone bailout fund offered temporary relief to investors, but the precious metal was heading for its worst monthly decline in three years. With the euro debt crisis unlikely to be resolved any time soon, investors have shifted their attention to Greece, which demands more far-reaching measures to prevent the crisis that started in Athens from spreading far beyond Europe.

By

M.Zohaib Gadit

Forex Trading Consultant