The bearish trend can resume (07 November 2005 08:11)

STRATEGY
Below 476.57 USD the major trend remains bearish 445.3 USD and then 439.04 USD are in the line of sight. The surpassing of 476.57 USD would cancel this anticipation and favor a recovery toward 489.08 USD.

SUMMARY
The MACD is negative and lower than its signal line. This configuration is damaging the commodity perspectives. The RSI is not yet indicating an oversold situation, so a continuation of the fall is technically possible. At less than 20, the Stochastics are extermely low. The volumes traded are less than the average volumes over the last 10 days.

MOVEMENTS AND LEVELS
The bullish movement seems to have stopped. The commodity is under its 50-day moving average located at 463.89 USD. The first support is at 445.3 USD and, in the event of a breach of this level, a continuation of the correction towards 439.04 USD is possible; to the upside, the first resistance is at 476.57 USD, then the strongest level is at 489.08 USD.

A bearish trend currently exists only for those holding dollars.

For those who have invested in gold selling pounds or Euros, the price reduction of gold over the last
month is still very small. Gold is back in 390's Euro level.

As the bull market for gold unfolds, the devaluation of those currencies (pounds, Euros) with respect to gold, in my opinion, will be far larger in the future. They have some catching up to do with the
devaluation of the dollar and yen.

The ECB appears to be making the same mistake as the FED. Lax monetary policy, keeping interest
rates too low for very long, creates the risk of substantial inflation in the months to come.
That is good news for European gold bugs.