Gold chart Mid day Monday Last weeks low was a direct test of the upper red trend line and the 1444 area. As long as that area holds the trends remain up. First resistance this week is 1497-1505 and then 1515-1525. Support is the 1457-1466 area and also 1471-1474. The US debt downgrade today has markets in a choppy fashion with stocks down 200. If another leg lower begins later in the day on stocks ---say another 200 points --- it might make the metals nervous. For the moment -- the trend remains up ------ and gold likely to consolidate for the next day until the market gets clearer direction on what it means to the markets. We think it would take a big stock market sell off to pressure gold ---- but that is not out of the question --and would probably only be temporary. As long as price is above last weeks lows --- the trend is still up.

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