Uptrend For Gold Has Been Rescued For Now

Gold recovered well from our 1^st tier uptrend line after Treasury Secretary Geithner alluded to the fact the U.S. would not be opposed to migrating from using the Dollar as the standard international currency.  Consequently, gold flexed its negative correlation with the Dollar, which is interesting because U.S. equities have been positively correlated with the EUR/USD, GBP/USD and USD/JPY throughout the heat of the crisis.  Such movements indicate that the correlations may be shifting between U.S. equities and the major Dollar pairs.

However, this is merely a hypothesis based on observation and will need to be clarified further.  What we can say is that the uptrend for Gold has been rescued for now.  Considering the large movement upwards last week on considerable volume, we’ve expected consistent reflections to the upside, and we may be witnessing these soon.

That being said, if gold can get above our 2^nd tier uptrend line and 3/6 highs, then we could see significant near-term gains towards our downtrend line and the psychological $950/oz area.

Fundamentally we see resistances of $939.27/oz, $941.79/oz, $944.03/oz, $947.40/oz, and $949.92/oz.  To the downside, find supports of $935.34/oz, $931.98/oz, $927.78/oz, and $924.69/oz.  Gold is currently trading at $939.75/oz.

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