Spot Gold : Mixed signals.
The VST direction of gold is unclear, with an argument for a move in either direction.
• We have noted the importance of the 1417-1420 range for spot gold for a while now, and with the close at 1416 or so, it is left with a formidable barrier from here on to 1424 to 1426.
• If it tests but fails to pass this range we suspect gold will pull back to 1404, possibly 1400.
• There is further support at 1390 or so, and even more so near 1380.
• Middle Eastern issues are far from over, and the reaction to the Japan disaster has yet to play through on the markets, which makes us prefer to watch the VST supports and resistances on Monday before re-entering.