Gold bulls still have the near-term technical advantage

The dollar is once again weaker against the euro and failing to break below USD1.4200 earlier this morning, the greenback is now on the defense.

For gold there is strong resistance at USD955 — USD960. In fact, there is increased selling in the physical market which is providing strong resistance. We have been tracking the physical market closely. Since the start of June physical buying has supported the gold price. However, we now believe this support has turned into resistance and there is more scrap selling. While we see USD955 as resistance, break above USD955 could see gold testUSD960 and USD970. Support for the metal is at USD946 and USD940.

August gold futures closed up USD3.70 at USD950.60 yesterday. Prices closed near mid-range yesterday amid a sell off in the U.S. dollar index yesterday. Gold bulls still have the near-term technical advantage. Prices are still in a steep two-week-old uptrend on the daily bar chart. Bears' next downside price objective is closing prices below solid technical support at USD920.00. Gold bulls' next upside price objective is to push and close prices above solid technical resistance at the March high of USD971.00. First resistance is seen at this week's high of USD955.40 and then at USD960.00. Support is seen at yesterday's low of USD944.60 and then at USD940.00. Wyckoff's Market Rating: 6.0.

Public Bank Gold Investment Account as at 23/07/09 3:51 PM

Selling PriceBuying Price
1 gramRM 111.1800RM 106.8600

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