Sunday, February 28, 2010

Gold poised for a new rally!

Gold prices are showing signs of life judging from the latest chart. Resistance is around $1116/oz. In Tuesday trading this resistance appears to be holding. I would not be surprised to see gold fall back to the $1057/oz support level before it advances higher. This will provide a 'double bottom' of sorts, or more correctly further confirmation of this uptrend. On a more positive note, gold prices might simply break in the next few days, once a short term uptrend has been tested. I did not mark this on the chart.
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Andrew Sheldon www.sheldonthinks.com