The gold rally continued in today’s trading session rising to $912oz, approaching the 50 day moving average. On the Futures side gold prices gained momentum on increased demand out of China and data released that country’s gold reserves rose 76% since 2003. The precious metal added 4.55% this week confirming a new range above $900oz. With the results of the stress test underway on May 4th and additional corporate earnings, the market should be cognizant of further “event risk.” At the current moment we are witnessing a reversion back to the traditional inverse relationship between gold and the dollar. Once the bear market rally fizzles out gold prices are likely to ease, as the dollar should moderate and the safe-haven story re-emerges.
|Support: 900.93 Current: 913.20 Resistance: 917.17 |