Tuesday, June 28, 2011

Wednesday Commodity Round-Up

The long-term gold chart shows that prices have broken one uptrend, but the longer trend started last year is still in place. Prices have technical support in the 144 and 140 area.

Prices are now below the 10, 20 and 50 day EMA. The 10 and 20 day EMAs are both moving lower, and the 10 day EMA has crossed below the 20. The 50 day EMA is now moving sideways. Also note that after peaking in late April, prices have yet to approach previously established highs.

While the A/D line shows a slight increase in inbound money, the CMF and MACD are both moving in negative directions. These two indicators tell us that momentum is decreasing and less and less money is flowing into the market.

Gold appears to be in a holding pattern right now. As commodity prices have dropped, the need for inflation protection has also dropped. However, there is still a fair amount of economic uncertainty, putting a bud under prices.