.. on the gold sell off ..., page-2

Hi Folks,

Dave Meger from Alaron is one of the best analysts I know of on the gold market.

He commented on 23/05/08 that gold had resistance at 928-30. That's right where it retreated last night while pausing there for the last couple of days:

Gold continues to test upside resistance on the back of renewed weakness in the USD and raging energy prices. Fears of inflation in the system have been pressuring equities and once again there has been a flight out of dollars. The gold and crude have been the vehicles of choice for the dollar related hedge so gold remains well bid. Keep in mind I have been quite fearful that gold is overdone in the near term and could easily see a correction - Strong resistance lies at $928-$930.

Monday is a holiday here in the US. The metals however will trade electronically on a normal schedule. Be wary as several of the recent US holiday's have seen significant overseas action affecting the metals. Tuesday is June option expiration, and both Monday's and Tuesday's session's will be distinctly affected by option related activity.

Basis June Gold
Resistance - $928
Support - $905 - $910