Review:

Yesterday the gold opened at 664.4. day high 669.5, day low 663.3 and closed at 665.1. It was a thin market yesterday. Although, durable good of Feb. did unexpected low 2.5% compare with consensus 3.5% which ignite gold to the day high. The inventory level of crude oil increased 5.1 million barrel, and Bernanke speech of the house lending problem will possibly spill to other sectors. It caused gold and oil pulled back from day high to day low at 663.3.

Technical:

Daily Chart

On the daily chart, the gold price is still in line with the support trend line. Major resistance is on 677.57.

Hour Chart

Hourly chart show more clearly that the gold in line with the support trend line. RSI and MACD indicating the gold is falling. Support is on 662.
SMA 10 is below SMA 20 but slightly higher that SMA 50. If the gold rebound from SMA 50, the gold would have a great power to break through yesterday day high on 669.5. Other wise, it may fall below 662, and test 656.

Market News and Data:

Tension on Iran

U.S. officials denied market rumors of a clash with Iran, while U.K denied anotehr rumor that it had sent troops to secure 15 British sailors and Marines being held by Iran on 23rd March, 2007. "Though markets cools off after the issue subsides, it gives market clues of a potential bull run crude oil and gold can witness when a global unrest of this order emerge" Quoted from Pradeep Unni, an analyst at Vision Commodities Services in Dubai.

Bernake Speaks

Bernanke speaks on U.S economic increased the uncertainty on housing market. U.S Index were drop to 82.75 from 83.05 while Bernanke speaks.

Oil

Yesterday IEA released weekly oi inventories report. Crude oil inceased 5.1M barrel and gasoline was drop lower than expectation caused oil fall back from 64.

Strategy:

Long Position: 665, 663
Stop Loss: 661, 658

Short Position: 669, 666
Stop Loss: 672, 668