Gold experienced a sizable selloff on Tuesday, dipping below July lows as U.S. equities posted large gains. Therefore, the positive correlation between the two is in full swing. However, the precious metal is still comfortably above our 1st tier uptrend line while the S&P futures are facing considerable resistances. Therefore, we have little reason to change our positive outlook on Gold, and we could very well see a retest of the highly psychological $1000/oz level. With the U.S. releasing key housing data this morning, we expect another volatile day in Gold. Fundamentally, we find resistances of $961.79/oz, $970.96/oz and $977.31/oz. To the downside, we hold our supports of $951.92/oz, $945.57/oz, $937.81/oz and $930.76/oz. Gold is currently trading at $957.70/oz.
