Gold February (gcg8) reached our first target @ USD 687o/z

We believe the contagion effect from the Sub Prime woes to the Equity will continue to spill-off to the Energy sector and Metals. Looking at the SP500, we can see some chart damaged has been done and we expect further declines in the weeks/months ahead. In this environment, Precious Metals with an Industrial purposes are the most exposed (Copper, Platinum, Silver). But we believe Gold correction will be short lived as Gold prices tend to perform strongly in a low or negative real interest rate environment.

Gold February (gcg8) reached our first target @ USD 687o/z. Next support is at USD862, if broken down USD835. areas.

Note: the support/resistance levels used in the matrix’s of this document are levels derived from yesterday high, low and close. Reference in the text to other support/resistance levels will occur.
GOLD SILVER
ZGG8 ZIG8
Resist. Resist.
891.8 16.214
883 16.043
877.8 15.986
883.8 16.058
869 15.815
865.4 15.701
856.6 15.53
Support Support
47dMA 34dMA
829.4 14.898
9dMA 9dMA
887.6 15.914

Thanks to saxo bank

MCXARUN
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