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"Gold badly hit yesterday" PDF Print E-mail
Written by Gary Howes   
Wednesday, 01 July 2009 13:40
A look at the trends in the gold and silver markets.

Marius Paun at ODL Securities talks us through the latest happenings in the gold and silver markets:

"Gold was badly hit yesterday largely in reaction to a rebound in the US dollar and in line with the whole commodities spectrum as funds were liquidating at the end of the month across the board. A weak US consumer confidence has been interpreted as less inflationary triggering a flight to quality, but in the greenback thus hurting gold. Consequently the yellow metal dropped below the short term moving averages settling $10.12 down at $928.85/oz The short term trend is bearish, the medium term trend is sideways while the long term trend is bullish."

9 day moving average - $931.90
14 day moving average - $933.11
40 day moving average - $941.80

Support: $922.60 (yesterday’s low) Resistance: $961.87 (high of 11/06/09)
Support: $917.85 (low of 22/06/09) Resistance: $958.20 (high of 12/06/09)
Support: $912.70 (low of 23/06/09) Resistance: $944.90 (yesterday’s high)

Silver price

"Following gold and other precious metals, silver finished lower due to the combination of US dollar strength and month-end / quarter-end liquidation. Some analysts also pointed the significant drop in crude oil as an influencing factor which led the way down. Overall silver lost 25 cents to close at $13.660/oz but only after bottoming at $13.458/oz, its weakest level since May 6th. The short term trend is bearish, the medium term trend is sideways while the long term trend is bullish."

9 day moving average - $13.897
14 day moving average - $14.056
40 day moving average - $14.492

Support: $13.458 (yesterday’s low) Resistance: $14.380 (high of 19/06/09)
Support: $13.250 (low of 06/05/09) Resistance: $14.323 (high of 26/06/09)
Support: $12.980 (low of 05/05/09) Resistance: $14.140 (yesterday’s high)