Price of Gold At Resistance Level, Expected to Decline

The price of Gold (on Chicago Board of Trade, CBOT) is currently at the down trend resistance level at the price of US$860.20 per troy ounce. The price went to a high of US$892 on 28th of December 2008 which was very overbought before it started to reverse downwards. The declining Relative Strength Index (RSI) indicator indicates that the recent short term up trend has lost its momentum and with today's sharp fall, it signals a confirmation of the bearish reversal.


Daily Gold Chart chart as at 6 January 2009 using NextVIEW Advisor. Click on chart to view enlarged chart.

Short term target should be around US$820 and the longer term target should be at least US$750.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

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