Gold Market Update

Gold downtrend neutralized & we're still expecting higher to Friday & potential next week. 

Resistance is 1594-1604 area (ideal 1598-1602)

After another quiet day of trading, with gold moving in a narrow range, we saw the first US jobs data of the week announced today with the ADP survey beating expectations with 198k new jobs being created compared to a concensus of 170k.

This led to an initial sell off in gold, though importantly the market found support at the lower boundary of the uptrend channel at 1567.  We saw strong buying come in at this level, with gold rebounding well above 1580 as bargain hunters saw value here.

We continue to be encouraged by the underlying strength in the market and the depth of support that comes in on any price dip.

As far as we are concerned, the longer the price remains above 1550 the better for the longs, as time will see the shorts start to get nervous about their positions after such a long sell off.

The weakness in oil and the renewed dollar strength today have not helped gold move higher, though we have commented many times that the correlation between these markets is presently weak.

Overall, although the recent price action is quiet, we continue to favour the upside.  The next few days will tell.

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GOLD CURRENT TRADE
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Our Position 
Bought 1Apr Gold on 28/02/2013

Entry: 1577

Stop Loss: 1552

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YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS 
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED. 

 Do your own due diligence. 

No one knows tomorrow's price or circumstance. 
 I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader. 
I do not accept responsibility for being incorrect in my speculations on market trend. 

 King Regards