Commodities and stocks continue to see pressure with a rising Dollar. There were discouraging comments coming out of Spain earlier this morning which is roughly right when the S&P started pressing to lower levels. The Gold is trying to fish for support at its .618 retracement of the range at 1548. A close below 1548 in the Gold and below 1294 in the S&P will be very discouraging to the bulls. The high overnight falls right against the important pivot, so I would use 1560-65 as a sloppy resistance level. The S&P will find strong resistance at 1306. Additionally, continued trading at these levels will cause liquidation into the weekend. Non-farm payroll will come out shortly, traders are waiting for some sort of catalyst and at this point, bad news should cause poor market reaction initially, however, bad news should become good news as QE will be directly on the table.

Gold

Resistance –1560-63, 1573, 1586**, 1592, 1601.5**

Support –1548, 1532**, 1523-26**

S&P

Resistance – 1306*, 1317-19*, 1326, 1334**

Support –1294*,1287.25, 1275

Gold went below the 1545-50 area to find the next support level at 1532. This has been the third time in two weeks that the market has reached this level. The same reaction occurred once again and now the market is trading more than $30 higher. It really has been unbelievable to see this type of move once again, hitting a high of 1571 midday and 1572.6 overnight. Closing above 1565 today will be very encouraging. I would like to see some stability above 1565 into tomorrow. However, maintaining last night’s lows will be encouraging. The next true upside target is now 1586 and then 1600. As resistance in the S&P held, followed by poor housing data, money has hit the sidelines prior to nonfarm payroll Friday. Money is flowing into the bonds as they continually grind higher. I am encouraged to see the 1306 level hold overnight with a low of 1305.25, but I will give the market must close above 1312 and ideally above 1317, which will give some encouragement into Friday.

Gold

Close above or below 1565, a close above maintains momentum

Resistance –1573, 1586**, 1592, 1601.5**

Support –1548, 1440 1532**, 1523-26**

S&P

Needs to close above 1312 tomorrow

Resistance – 1317*, 1326, 1334**, 1342*, 1352.25**

Support –1306**, 1294*

Good morning all. Gold actually had most of its trading last night below 1550 but did find support around 1545, taking out yesterday’s lows, making it a very tough trade for those with stops below there. European markets have seen a strong recovery in the last couple hours as the European Commission calls for direct aid to troubled banks. After initially seeing a strong bounce, the Euro, S&P and Gold have all fallen back to their lower levels from overnight. Gold continues to be a very tough trade, making bigger swings on the news. The S&P however has held nice support against the 1320-1318 area. Only a close below Friday’s low area of 1312 will cause further selling to test 1294. I want to pay attention to the Bonds which are on the highs over the last two weeks and are setting up for a great short trade.

Gold

Resistance – 1565*, 1573, 1586*

Support –1545, 1532, 1523-26**

S&P

Resistance – 1331-34, 1342, 1352.25**

Support – 1318-1320*, 1312**, 1294*

Good afternoon and Happy Memorial Day. Gold held well on Wednesday and Thursday, playing off of 1550 three times. Into the floor close on Friday the market popped to new highs on the day to close well and have momentum into Sunday/Monday trade. With the market trading up to 1583 last night and closing $10 from the highs the action doesn’t cater to the momentum trade. I will be looking for light support at 1570 which is where a shelf is being built but ultimately I will be watching 1565 to be a stronger support level as there was solid volume there on the floor close Friday. The Euro traded slightly positive today and the S&P traded strong in the middle of the night once again. I expect to see a small bounce in the Euro early in the week (whether it is short covering or just a dead cat bounce), which will be supportive to Gold. The S&P has been trying to build support at 1320, but could cover a gap, trading down to 1315, I have a target of 1342 this week. With quite a bit of data coming out early tomorrow, traders will be looking for a signal to confirm the strength from late Friday and into today.

Gold

Pivot range, close above or below the 1370-74

Resistance - 1591, 1602**, 1613**

Support –1565*, 1550***, 1545.5, 1532**, 1523-26**

S&P

Continued close above 1318 is important

Resistance -1327- 1331, 1342*, 1349***

Support –1307, 1299, 1291***

Good morning all. Markets are sitting pretty much where they were on the close yesterday. However, a little dip overnight hit support and has allowed Gold to pick some momentum, trading about $10 from the lows.  With data light going forward on the day, traders will look to momentum. Additionally, the Euro has shown some strength overnight from the lows as there is speculation on a joint bond program. If the Euro can catch a bid for what it feels like, the first time in weeks, the S&P and Gold will see additional support. At this point I would not really want to see Gold get below 1558 on the day, it has started building a shelf there for intraday support. A close above 1565 is bullish and testing yesterday’s highs would be very bullish. The S&P should continue to find support just below 1320 and I would like to see a test of 1331, with my overall target 1342, the 100dma is at 1351. Violating 1550 in Gold and 1306 in the S&P will be bearish to close the week.

Resistance –1565, 1574**, 1378, 1591, 1602**, 1613**

Support –1550***, 1545.5, 1532**, 1523-26**

Continued close above 1318 is important

Resistance -1327- 1331, 1342*, 1349***

Support –1307, 1299, 1291***

With a rally off of key support at 1551 last night the market is trying to press 1570. As European worries continued to ease, Gold and the S&P are both trading as if yesterday’s declines never happened. Durable goods come out at 7:30 and markets seem to be getting a boost ahead of it. Resistance will come in at 1573.7 which is a .618 from the 1599-32 range, and remember 1575 is a previous shelf area. 1565.9 is a halfway on that range and a close above there will be bullish and show conviction that a bottom was put in. The S&P will see resistance at 1327-31, with bullish data and a cooperative Euro, the target will be 1341. A close above 1307 yesterday was a very good sign.

Gold-

Pivot – close above 1665.9 is bullish

Resistance –1573.7***, 1591, 1602**, 1613**

Support –1552***, 1545.5, 1532**, 1523-26**

S&P –

Resistance -1318**,1327- 1331, 1342*, 1349***

Support –1307, 1299, 1291***

We witnessed a tremendously choppy day, it magnifies how much each market is driven by currencies right now. The stock market and Gold erased early losses with a better feeling that Europe will avoid contagion. Now with Gold back to the resistance level it started the day, closing right at 1562, let’s move forward. There is a lot of data coming out tomorrow morning starting with German GDP. As you can see the market recovered when European concerns were eased, a solid German GDP number will help this market recover further, eying 1575. After seeing a big range today and the initial recovery fell just short of the overnight lows at 1551, I will look for that to be a key support, it may not get there but the first test there should bounce and prove to be a solid buy area. Don’t forget that 1554.5 was a level before and some buying may come in there ahead of 1551.

Pivot – close above or below 1662

Resistance – 1567.5,  1575**, 1591, 1602**, 1613**

Support –1552***, 1545.5*, 1532**, 1523-26**

Yesterday, choppy day in Gold closed poorly as all inversely correlated dollar assets sold off in the wake of more news out of Greece. This continued downward last night but markets are searching for support. The first test at 1554.5 (.618) bounced back to what has become resistance at 1562.8 (was light support) before finding news lows at 1551. Good volume traded at 1554.5 followed by lighter volume on new lows, stops being hit, usually leads to a shelf. Resistance this morning will continue to be the 1562.8 area. There was also a breakdown point that will be a light resistance at 1567.5. The major resistance will be 1575 and selling the first test there should prove to give you a good down draft for a few dollars. With the Euro trading very poorly, it will continue to put pressure on both Gold and S&P, if the S&P starts trading below 1294, the day could easily get a lot worse for all inversely related dollar assets. All markets are trying to gather some mojo to recover and shrug off Greek rumors.  New home sales are at 9.

Gold -

Resistance – 1662.8, 1567.5,  1575**, 1591, 1602**, 1613**

Support –1554***, 1545.5, 1523-26**

S&P –

Pivot - 1307.75, the market must close above here for consolidation higher

Resistance -1318-20**, 1331, 1342*, 1349***

Support –1299, 1291***

Gold had a nice follow through on Friday as easing started to pop up on the headlines. A failure to trade through 1600 and a strong bottom in the stocks in the last 24 hours helped take some of the premium out of Gold in a hurry. The market fished for support at 1772, trading almost $10 higher at the moment. Looking back at last week, we have had support at 1774.5, where the market built a shelf. It will be very important to stay and trade above there all day. Ideally, bulls want to see this market close back above 1584.5, yesterday’s lows. The first test at that level however should be a quick sell opportunity. The S&P is trading with the dollar, both higher, although unusual of late, it is something that we could start seeing a lot more of. US data has started to firm up, and more fear being placed on Europe, stocks either have to go higher, or Europe gets so bad that easing become the main savior. In both scenarios, stocks will go higher in the near term. After a solid outside bullish day yesterday, a close above 1320 will keep up the momentum.

Gold

Resistance –1585, 1591-92,  1602*, 1613**, 1623

Support –1574.5***(-72), 1565, 1554**

S&P

Resistance -1318-20**, 1331, 1342*, 1349***

Support – 1307.75, 1299, 1291***

Today’s economic data is very light, so traders will be looking for headlines this morning. The talk of more QE has helped commodity prices as Gold holds the low 1590’s and the Euro is trading positive. Gold built a rough shelf with lows at 1583.5 early Friday, continuing to consolidate higher with a low last night at 1588.6. With the stocks getting hammered late into trading on Friday and now right at 1300, a continued positive trade will help support Gold. The dollar will be important to watch to provide a further catalyst for Gold this week. I have a target of 1613 on the week.

Resistance –1602*, 1613**, 1623

Support – 1587.1, 1583.5(rough) 1574.5***,1565, 1554**