Gold has found good support around $920.

Gold are higher after yesterday close as the dollar is setting back ahead of Wednesday’s
Group of Eight meeting which is scheduled to start today. The world will be listening to any
indication of what the future role of the dollar as the global reserve currency will be. Ahead of
the meeting senior officials from various countries have downplayed the potential for
discussions on any specific currencies.

The fear that world economies are slowing and the financial crisis is still intact has pressured physical commodities this past week, however, this morning’s sharp rise in German manufacturing orders has tempered the selling pressure. The schedule for U.S. economic data is very light this week, so the focus will be the G8 Meeting and the U.S. Treasury Auctions. The U.S. will be selling $35 billion in 3 –year notes today. Be very careful trading the long side of the metal markets, the downside is such a quicker and faster game.

Gold support is at $920 and $914, with resistance at $930 and $938. Consider this a range trade until either of those barriers is broken on a settlement. A settle under 914.00 could accelerate prices to 870.00.

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