mportant support is now at $1,080 and breach of this level could trigger stops. As we have been maintaining a bullish view for some time based on the big picture charts, our view stands vindicated as gold prices tested $1,100 levels. As long as the crucial weekly support at $1,073 remains intact, we feel gold futures could again inch higher towards $1125 or even higher. The rally does not indicate any signs of exhaustion yet. Unexpected fall below $1,073 could trigger a corrective fall towards $1,025 or even lower towards $1,011. Only a deeper fall below $1,007 will indicate bearishness. Such a fall could take it lower towards $980 or even lower towards $928.
Elliot wave analysis indicates a possible fifth wave move in progress. This has been confirmed on rise above $978. A potential fifth wave target lies at $1,100, which has been met. RSI is in the neutral zone now indicating that it is neither overbought nor oversold. However, signs of negative divergences are seen now. The averages in MACD are still above the zero line of the indicator indicating the bullish trend to be intact. Therefore, look for gold futures to test the resistances levels and then correct lower subsequently. Supports are at $1083, $1,072 & $1,045. Resistances are at $1,100, $1,125 & $1,160."
Novice view: This should be it. Unless Russia joins in the buying spree, I don't see it going to clear $1,125 for 2009. Gold/Silver Ratio is more than 60/1. Unless silver plays catch up, else, with stock indices looking good, there is no incentive to chase gold.