What’s Up, What’s Down: Gold Rallies as the Dllar Weakens

Comments for Friday, August 28, 2009

Looking Ahead to Today By Reflecting Back at Monday’s Price Action


Higher settlements Thursday for Euro fx, Swiss franc, Canadian and Aussie dollar along with the British pound and Japanese yen while lower for the dollar index. The euro and franc continue to hold support areas rallying sharply off their session’s lows. The franc also made a new recent high. The yen had its highest high and close since July 23rd giving me a Buy Signal. The Canadian dollar a new recent low but also rallied to have strong close still in an uptrend as long as it doesn’t settle below 9000. The pound settled higher after making a new recent low but still a sell on rallies at this time. The Aussie dollar also closed higher also continuing to look strong with good support under 8000. The dollar settled lower still in a downtrend overall. I am holding Buy Signals for the Euro, Swiss franc and Canadian dollar; and a Sell Signal on the US Dollar Index.

Japanese Dollar Chart


Higher closes yesterday for gold and copper while lower for silver and platinum. All of the metals continue to be in uptrends overall in choppy daily action. Copper settled slightly lower again now is in a small BULL FLAG looking very strong overall. Gold is still in a BULL PENNANT and a large BULL TRIANGLE. Silver closed lower after a sharp drop early but did recover nicely off its lows. There is, however good resistance over 1450 basis the December contract while still in an uptrend with the rest of the metals. Platinum settled higher this time but struggling to move up while losing some steam over the last three weeks.

Gold Chart

See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.