DAILY GOLD TREND FOR 12 JAN 2011

Comex Gold price sttled higher at $ 1384.30 up $ 10.20
an ounce at New Yeork Mercantile Exchange.

 Gold price rose Tuesday reversing their recent downward
trend as investors bought the yellow metal as protection
 against European sovereign  debt crisis.

Short-covering could also be one explanation for Tuesday's
rally so the real question to ask is whether it's sustainable.
 Momentum traders were waiting for the gold price to shake
out the sellers and will be paying close attention to Tuesday's rally.
 How strong it is and how sustainable it is will dictate if they
 put their money to work in gold or if they wait for more strength

A bargin hunting buying near key support level from Asian sector
specially from China and India gives  strength to bulls really.

There are some smaller EU countries' bond auctions upcoming
that have the market place concerned regarding  investor demand
for those bonds. This is bullish for the safe-haven gold market.

Techanically Ist resistnece seen at $ 1390.00 and than a
psychological resistance at $1,400.00.  Ist support seen at
Tuesday low $ 1372.00 and than $ 1365.

MY  COUNTS FOR 12 JAN FOR FEB GOLD

RESISTENCE #2.............................$ 1395.00(MCX Rs 20540)
RESISTENCE #1.............................$ 1389.00(MCX Rs 20487)
PIVOT.............................................$ 1380.00(MCX Rs 20415)
SUPPORT #1..................................$ 1374.00(MCX Rs 20356)
SUPPORT #2..................................$ 1367.00(MCX Rs 20284)

Happy trading

RAHUL KUMAR
GOLD Analysist

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