Gold is bouncing off our 1st tier downtrend line after posting losses on Friday despite the substantial selloff in U.S. equities.  We view Friday’s losses as investor hesitation since analysts are forewarning a new bubble in precious metals. 

However, the negative correlation should hold true between Gold and equities as far as we are concerned.  With S&P futures sinking below 2008 lows on Friday, we anticipate a heightened selloff in equities. 

Therefore, we could very well see a solid rise in Gold with a retest of the highly psychological $1000/oz barrier.  Fundamentally, we find resistances of $951.92, $961.79/oz, $970.96/oz and $977.31/oz. 

To the downside, we hold our supports of $945.57/oz, $937.81/oz and $930.76/oz. Gold is currently trading at $949.40/oz.

Copyright 2009 FastBrokers, Latest Forex News and Analysis for Forex, Bullion and Commodity Traders.