The following comments were transmitted to Myra P. Saefong, Financial Writer at Marketwatch.com, at 8:03 AM EST.
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The overnight action in the Gold market has brought the April contract to the 50-day MA which now stands at 541.70. Back on 2/7, I wrote that I expected to see a test of the 50-day MA and we have now seen that test with April Gold touching 537.80. This very strong support area is holding for now and, with my proprietary oscillators now back in extreme oversold territory this may be an opportune time for those who have been waiting for this retracement to finally end. Only consecutive closes below the 50-day MA would compel me to rethink my position. The market also has successfully tested trendline support drawn from the Nov/Dec lows which is further evidence that this pullback may have finally run its course and the market could be poised to make a run at $600.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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