Looking at the daily charts we found that gold has resumed its long term bullish rally and this may continue as long as there is clear view from the Italian economy. As gold is always considered as safe asset class so the money is now flowing into the gold related assets in large form, this is the reason why the gold is trading at its all time high level. Charts suggest that Gold has created a rising trend line, So we see further strengthening in short term from here. This makes the near term trend to bullish and also same for the medium term. Today’s trade is supported by the technical analysis and recommends us to trade long positions for today. Studying technical indicators like RSI, slow Stochastic, and MACD suggest that the long positions are valid and are in favor of trade on daily chart and even on lower time frame charts. Trend is most likely to be bullish today.
Our recommendation on Gold : Gold technical analysis for 18 July 2011 trading levels, we recommend to trade long on Gold above 1589 level for targets as 1599 and 1608. A protective stop loss order should be placed just below the 1583 level.