October gold closed higher due to short covering on Thursday as it consolidated some of this week’s decline. The high-range close sets the stage for a steady to higher opening on Friday. However, stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If October extends this week’s decline, the reaction low crossing at 906.40 is the next downside target. Closes above the 10-day moving average crossing at 946.10 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 946.10. Second resistance is Monday’s high crossing at 960.00. First support is Wednesday’s low crossing at 926.50. Second support is this month’s low crossing at 906.40.

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As mentioned in the last couple reports we are currently waiting for a correction which will hopefully provides us with a low risk entry point. Since June we have been in a short term down trend, but the longer term trend is still up. Which is why we are looking for a buy signal and not a short. The past couple days we have seen gold and silver sell down. Complete Story

I think it came as a big surprise to many traders that the gold market imploded on Tuesday pushing to its lowest levels in several days.

View the Gold Video Chart Here

The downward spiral was enough to trigger a daily “Trade Triangle” which moved us into the neutral camp on this market. Exiting our long gold position based on our “Trade Triangle” signals produced a very small profit or in some cases of break even trade.

So the question is: Is the sharp downward move in gold over?

In my new video I answer that question and share with you some levels I think gold will go to on the downside. I also share with you that we could be setting up for it excellent buying opportunity, if and when our “Trade Triangles” are aligned.

If you have a few minutes I strongly recommend that you take the time to watch this gold video.

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Must See Gold Video
All the best,

Adam Hewison
President, INO.com
Co-Creator, MarketClub

August gold closed sharply lower due to profit taking on Tuesday and below the 10-day moving average crossing at 946.00 signaling that a short-term top has likely been posted. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 934.80 would confirm that a short-term top has been posted. If August extends this month’s rally, the reaction high crossing at 966.70 is the next upside target.

First resistance is Monday’s high crossing at 960.00. Second resistance is the reaction high crossing at 966.70. First support is the 20-day moving average crossing at 934.80. Second support is this month’s low crossing at 904.80.

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September silver closed lower due to profit taking on Tuesday as it consolidated some of this month’s rally. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought and are turning neutral hinting that a short-term top might be in or is near. However, it will take closes below the 20-day moving average crossing at 13.364 to would temper the near-term friendly outlook in the market. If September extends this month’s rally, the reaction high crossing at 14.335 is the next upside target.

First resistance is today’s high crossing at 14.095. Second resistance is the reaction high crossing at 14.335. First support is the 10-day moving average crossing at 13.599. Second support is the 20-day moving average crossing at 13.364.

Gold was slightly higher in quiet trading overnight as it extends last week’s trading range. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If August extends this month’s rally, the reaction high crossing at 966.70 is the next upside target.

Closes below the 20-day moving average crossing at 935.60 would temper the friendly outlook. First resistance is Monday’s high crossing at 960.00. Second resistance is the reaction high crossing at 966.70. First support is the 10-day moving average crossing at 947.70. Second support is the 20-day moving average crossing at 935.60.

Gold closed higher on Monday as it extends last week’s trading range. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term.

If August extends this month’s rally, the reaction high crossing at 966.70 is the next upside target. Closes below the 20-day moving average crossing at 935.00 would confirm that a short-term top has been posted. First resistance is today’s high crossing at 960.00. Second resistance is the reaction high crossing at 966.70. First support is the 10- day moving average crossing at 944.60. Second support is the 20-day moving average crossing at 935.00.

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(Reuters) - Gold rose to a new 6-1/2 week high of $958.70 an ounce in Europe on Monday as the dollar weakened, prompting investors to buy into hard assets such as bullion, while firmer oil prices provided further support.

The metal remains in a range of $945-960 an ounce, with strong technical resistance towards the $960 mark and weakness in jewellery and investment demand capping gains.

* Gold hits highest since June 11 as dollar weakens

* Oil prices rally, boosted by stocks

Spot gold XAU= was bid at $956.45 at 1203 GMT, against $950.35 late in New York on Friday. U.S. gold futures for August delivery GCQ9 on the COMEX division of the New York Mercantile Exchange rose $3.50 to $956.60 an ounce.

Saxo Bank senior manager Ole Hansen said the dollar was acting as the chief driver of gold during the seasonally quiet summer period when liquidity is low.  Continued…

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August gold was slightly lower due to light profit taking overnight as it consolidates some of Thursday’s rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term.

If August extends this month’s rally, the reaction high crossing at 966.70 is the next upside target. Closes below the 20-day moving average crossing at 934.30 would temper the near-term friendly outlook.

First resistance is Thursday’s high crossing at 957.70. Second resistance is the reaction high crossing at 966.70. First support is the 10-day moving average crossing at 941.30. Second support is the 20-day moving average crossing at 934.30.

Gold priced ended the month with a 5% decline, but a 2% rise in the second quarter and 6% rise in the first half of 2009. June is typically the best month of the year to buy gold at an average 10% low for the year. Most analysts are projecting gold prices will end the year above $1,000/oz.

* “Gold Prices Seen Trending Higher, said Peter McGuire, MD of Commodity Warrants Australia, reports CNBC video. Expect to see a softer U.S. dollar over the course of this week,” predicts Stephen Roberts, chief economist at Nomura.

* “Gold and economic freedom are inseparable. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights,” wrote Alan Greenspan back in 1966.