Review:

26-Feb-2007
The gold price was opened at 681.3, day high at 689, day low 681.3 and closed at 687. The price rised 0.84% and was rising since opened. The oil market and the general strength of comomodities are helping gold, note that some investors buy gold when energy cost climb to hedge against inflation. Iran's nuclear research program has triggered oil and gold rising in the past week.

Technical:

Daily Chart

Technically from the daily gold chart, we can see the spot gold price climbed above the resistance of $676 and ahead to $730 at the moment. The up trend still valid. However, RSI, Stochastic is showing the price is on a high level and indicating the price may go down very soon. MACD is indicating rising trend.

Hour Chart

Stochastic and RSI are on middle level, according from the previous trend, we can assume the gold price would bounce back whenever RSI reach near 30. We can long gold when RSI near 30 and currently RSI is on 45.122. MACD is going on the down side direction and indicating the digestion of market from rising in the past weeks.

Market data:

Iran rejected demands made by Western countries to suspend uranium enrichement and there is some caution in the market over the possibility of tensions over Iran's nuclear program. Oil price is currently above $61

Consensus Prior
Durable goods orders excluding transportation (JAN) -0.3% 2.7%
Consumer Confidence (FEB) 109 110.3
Existing home sales (JAN) 6.24M 6.22M

Strategy:

Long Position: $677, $681
Stop Loss : $672

Short Position: $688, $693
Stop Loss : $697