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Gold Trading Analysis 5 June 2012

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Gold Chart 5 June 2012

Following the strong rally for spot gold last Friday the precious metal traded in a narrow range yesterday, consolidating the gains which saw it move from a low of $1544 per ounce to close ahead of the weekend at $1622.78 per ounce.  Friday’s high of $1629.77 ran into stiff price resistance which now resides in this area and extends all the way through to the $1679 per ounce region and beyond.  So any further strong gains for gold will need sustained buying momentum to break through this deep area of resistance.

To the downside on the daily gold chart, gold has created a triple bottom price action in the $1530 per ounce region which has provided the strong platform and was the springboard for Friday’s surge higher.

Moving to our intra day charts and the gold futures on the CME exchange we have already seen some bullish momentum in the market with strong buying on our volume bars, a green heatmap and several entry set ups from our roadkill signals across our three tick charts.  In addition the GC August contract has also just broken above the $1617 per ounce region which has now created a platform of support on an intra day basis for gold bulls.