In last nights website update gold support was listed at 1417-1423 and the low so far is 1423. Resistance was listed at 1438-1444 and the high so far is 1437. We discussed that short cycles usually have a pullback draw during this time of the month and today's pullback to the lower red channel line seems to be in line with that. However it would take a move and close below the lower red line to call this weeks uptrend in question and to confirm that short term cycles are having an effect. The underpinning of the market seems to remain strong and the market is watching to see the developments that could transpire this coming Friday in Saudi Arabia's planned protest. Events in Libya are also on the radar of the gold market. There is news this morning that OPEC might call an emergency meeting to address the shortfall being caused by the shortfall in Libya. This has added to the oil and gold pullback we've seen so far since the New York market open.
While that production can be made up --- the market is still concerned that any other DISRUPTION from other producers would put a crimp on supply that might not be able to be made up so easily.
Support for gold remains at 1417-1423 area as listed on last nights website update and resistance is the 1438-1444 area. It takes a close above the 1435-1437 area to increase the potential that gold can move higher this week. As long as price is inside the red channel line -- the trend is still up. Key weekly support is the lower dotted trend line just above 1400. With short term cycles in down mode --- the potential for gold to remain subdued has merit -- but as long as we hold the lower trend line --- the potential for gold to attempt another push up toward 1433-1435 in another test should be in play.