COMEX Gold – December’10 – Daily Briefing

Friday, September 10, 2010

Supports Resistances
1246.0 – 1246.4 1250.9
*1244.8* *1251.9*
1241.6 1254.6
1239.2 – 1239.5 1256.6
1235.4 *1259.3*
*1233.5* *1264.7*
1228.5 – 1228.7 1268.0
1225.9 1270.6

Open 1256.7
High 1260.5
Low 1243.5
Close 1250.9

Technical outlook for Dec’10 Contract

Market yesterday turned lower with relatively moderate volumes, following weakness from pullback the previous day,
and hit a low at the middle bollinger on the daily chart, closing above the week’s open, which suggests market today to
be in a mixed to positive setup and can expect test of levels upside today.
Bollinger bands today provide levels at 1264.3, 1245.6 and 1226.8. Market able to hold above the middle bollinger is
expected to see re-test of upper bollinger in near-term. Bands narrowing suggests market to see a sideways to positive
setup for near-term, held above the middle band. A close below middle band can expect weakness continue to test the
lower bollinger on daily chart.
Market still holds above the short-term trend support as parabolic SAR, today at 1243.5. A break of it on close can be
seen as indication for weakness near-term. BB-Trender provides short-term support at 1237.9.
Market downside yesterday was held by the key 14-Day EMA, which held downside earlier last week, and today is at
1244.8. 9-Day EMA is at 1249.4 and 20-Day EMA is at 1239.4 today.
Market profile suggests mixed to weaker setup for the market, with 1251.9 expected to play a pivot for today. Above it
sees levels to watch at 1255.9, with PoC yesterday at 1257.5 and value area yesterday at 1258.0 as key levels, followed
by 1261.4. Downside sees levels to watch at 1247.0, with key level at 1245.0, below which can expect weakness
continue for today, with levels to watch 1242.5 and 1238.5.
For today, market is seen in mixed to positive setup, with initial support at level 1246.4 and swing level at 1246.0, and
key support for today on move below it at the trend line at 1244.8, break of which can expect weakness for the market
towards 1239.5 and 1235.4, with support at level 1233.5 to be watched, further below which can expect downside
continue towards short-term retracement level 1224.4.
Upside today is expected to see initial resistance at the close yesterday at 1250.9. Market unable to hold above it can
expect weakness to test levels downside. Move above it can look for test of 5-Day EMA at 1251.9 today, further above
which can expect upside to test level 1256.6, with key level at 1259.3, further above which can expect upside to test the
week’s high 1264.7. Trend lien shows resistance today at 1268.0.
News and Fundamental view
Gold futures eased yesterday on pressure from position clearing as US economic data spurred risk appetite, hurting the
safe-haven. Data yesterday showed new U.S. claims for unemployment benefits fell more than expected last week to
their lowest level in two months, a hopeful sign for the troubled labor market. Also July U.S. trade deficit narrowed
more than expected, shrinking 14 percent, as imports retreated and exports shot to their highest since August 2008.
IMF sold 10 metric tonnes of gold to the central bank of Bangladesh on Sept. 7, using Tuesday's market prices for the
transaction. IMF said the sale raised $403 million, adding that it was part of 403.3 tonnes approved for sale by its
executive board in September 2009.
According to data from sources, ETFs holdings worldwide eased by 0.1% yesterday, with SPDR, the largest, easing
0.1%, ETF Securities, the second largest, easing -0.7%, while iShares added 0.6% to its holdings.
Japanese government today said Japan's economy isn't quite as weak as first thought, but it still needs help, as it
unveiled details of a new $11 billion stimulus package. Revised figures showed that GDP expanded at an annualized
rate of 1.5% in the April-June period, an improvement on the meager 0.4% reported in last month's preliminary report.