Gold has been deflected by our 3rd tier uptrend line and is consolidating around our 1st tier downtrend line as the S&P futures gravitate around 1000. Recent movement in gold has been uneventful with optimism and uncertainty slugging it out. However, we do notice recent buy-side action has been weaker than sell-side, telling us present momentum remains in favor of the bears. Gold still has its psychological $950/oz level and our 2nd tier downtrend line bearing overhead. Hence, the topside is riddled with potential obstacles. On the other hand, gold's 8/17 lows were above its 7/29 lows, keeping the medium-term uptrend intact while forming several layers of technical cushions. It seems gold may continue to wobble until our 3rd tier uptrend line collides with our 2nd tier downtrend line and our 1st tier downtrend line does the same with our 2nd tier uptrend line. The trading range may expand in the meantime with volatility gradually increasing until an inflection point is reached. Meanwhile, investors should watch for a breakout in the EUR/USD in either direction since this currency pair has been a reliable positive correlation.
Present Price: $939.13/oz
Resistances: $941.46/oz, $943.10/oz, $944.62/oz, $945.64/oz, $947.79/oz
Supports: $938.80/oz, $937.28/oz, $935.88/oz, $934.11/oz, $932.34/oz