03 December 2009

Gold Daily Chart

We had a dead hit on the target of 1225, and the market seems to be withdrawing with stocks ahead of the US Non-Farm Payrolls Report.

If this is to be a normal pullback in this uptrend, then we would expect to see the 1190 level hold on the daily close. We would then look for a consolidation.

If this is to be a correction of the rally, then a pullback no greater than 50% of the breakout would be normal.

If there is to be a test of the breakout support around 1170, then it could be a rare buying opportunity if it holds and forms a bottom.

Our longer term target for gold is much higher than this.