Gold Nears 25-Year High

January 9, 2006
Ashton Dorkins

TradingMarkets

Futures Pivots are now much easier to use and available for free. To use
them as part of your daily research, simply select the contract you are trading
and tomorrow’s support and resistance levels are displayed.

Consumer Credit was the only economic news released today and as
expected, was not particularly market moving. However, a number of Fed members
were speaking during the session and you can read their comments in our
Economic
News section.

Treasuries halted their 2-day decline, boosted by the Fed
comments on inflation. The US Dollar rebounded versus the Euro to help lift the
Dollar Index from a 3-month low.

However, it was Gold (Futures Pivots) that took center stage once again after
hitting an almost 25-year high. While the push to new highs clears short-term
resistance, the technical position may not be as bullish as first appears.
Notice how the RSI has failed to confirm the move higher, setting up a possible
negative divergence.

Chart courtesy of FutureSource Xtra

Crude Oil (Futures Pivots)
pulled back from a 3-month high but the best potential setup may be in Natural
Gas. With the market in freefall for almost a month the move appears to be
extended to the downside.

Chart courtesy of FutureSource Xtra

Coffee
(Futures Pivots) remained in the spotlight today with
rumors circulating that President Chavez is about to take supplies by force as
producers slow sales rather than accept artificially low prices.