Gold Commentary - 20/05/09

9 day moving average - $922.95

14 day moving average - $915.43

40 day moving average - $902.43

Gold Report:

Recently, strength in equity markets was largely interpreted as the reason for a capped upside in gold due to reduced safe haven demand but with stocks relative stable yesterday, it was left to the US dollar to provide guidance for the yellow metal. So a softer greenback helped gold recoup some of the previous day pullback with a gain of $7.30 for the day to close at $925.75/oz. In addition, weakness in the housing starts data suggested the sector is not out of woods yet which in turn offered some extra support for gold.

The short term trend is sideways while the medium and long term trends are bullish.

Support: $917.30 (yesterday’s low) Resistance: $940.70 (high of 25/03/09)

Support: $911.25 (low of 12/05/09) Resistance: $936.15 (high of 27/03/09)

Support: $908.20 (low of 11/05/09) Resistance: $929.10 (yesterday’s high)