The Gold Futures Market after taking a hit on Thursday 04/26/07 recovered somewhat on Friday after holding at the .382 (673.8) Fibonacci level and retesting the 677.5 level on the back of a weak GDP figure.
Actually, the growth of 1.3% in the first quarter of 2007 was the weakest in 4 years with housing being the key drag with upward inflation risks remaining quite high. With a busy week ahead regarding the release of more statistics it could be a most interesting week ahead.
After tackling the previous top of 692.5 (Comex Gold Futures Continuous Contract — day traders view the June ‘07 for a better guide) the market was unable to challenge the psychological 700 barrier at its first attempt and corrected back to the .382 (673.8) Fibonacci level before rallying above Friday’s open and above the 677.5 support line.
Should Gold Futures hold firm another attempt at 700 will be in order and to become fully convinced we have gained momentum a 3 day close above the 700 level will certainly bode well for an attempt at the previous major top of 732 (Comex Gold Futures Continuous Contract) and depending on the speed and ease the market takes out this top Mr. Sinclair’s temporary top of 761 comes into play.
Lest we forget we are concentrating on the upside of Gold because we are in an ‘up-trend’ and geopolitical and economical policies and tensions have not subsided, changed or even look likely to change for the better any time soon.
Should the Gold Market correct further you would see major support at the .618 Fibonacci level and the previous top of (660.5) holding true …
Gold stocks have been hit serverely considering the rather small correction and the mounting evidence that we are in a “GENERATIONAL GOLD BULL” run and an ever changing world. One wonders when the investing world ‘wake up’ to potential ‘well managed’ Gold Stocks provide we could see prices in the tune of multiples to where they sit “TODAY”.
The U.S Dollar found temporary support at the .8113 level before a very modest rally to the .236 Fibonacci level of .8162. Next week should be an interesting time for the U.S Dollar as figures being released will determine its immediate reaction but with growing tension between the U.S and Russia, the never-ending violence in Iraq and Afghanistan, the discovery of terrorist cells in Saudi Arabia combined with the increasing imbalances of the U.S Current Accounts and the continuing failure in subprime mortgage loans any rally in the U.S Dollar if it can muster one …. you would think would be short-lived.
Thus, a rally back to the 50% Fibonacci level of .8216 and the .8205 low if possible would provide major resistance and certainly a point of entry for sellers believing in the downward potential that a weak U.S Dollar provides.
NOTE: For a more detailed summation of the markets it is well advised you check the daily updates provided by “Trader” Dan Norcini at Mr. Sinclair’s site JSMINESET. Where you will get trading lessons of the highest caliber for “FREE” …
