2009-09-08 11:56 written by: FastBrokers House(info@fastbrokers.com)

Gold is staring down February highs as the precious metal continues its impressive run. It seems these previous 2009 highs may soon become history considering gold has charged past our 3rd tier downtrend line running through 2008 and 2009 highs. However, current hesitation is easily understood as the precious metal deals with 2009 highs and the psychological $1000/oz area. Additionally, the EUR/USD and GBP/USD may soon encounter topside obstacles of their own. Regardless, we've witnessed technical breakouts to the topside in both of these currency pairs as well as further deterioration to the downside in the USD/JPY. Hence, investors are confirming their preference to hedge against inflation amid worries that America's liquidity measures will haunt the Dollar down the road. This is all great news for gold considering the precious metal's negative correlation with the Greenback. Even though gold's rally may tap on the breaks today, volatility should pick up across the markets on Thursday with key economic data and news from Britain, China, and the U.S. We left our trend lines as is on our gold chart to give investors an idea of how price has responded to upcoming inflection points. Meanwhile, our 3rd tier downtrend line should serve as a technical cushion along with Friday lows. $1000/oz should continue to play a large role over the immediate-term considering its psychological significance.

 

Price: $1002.40/oz

Resistances: $1003.46/oz, $1005.46/oz, $1007.83/oz, $1010.26/oz, $1012.39/oz

Supports: $1000.38/oz, $998.16/oz, $996.62/oz, $993.55/oz, $991.84/oz

Psychological: $1000/oz

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