August 22, 2009 – The XAU Index continues to make good progress in building support. One of these days this support will propel the XAU Index above resistance around the 152-154 area, which is the same area of resistance discussed many times recently.
In the last commentary I suggested that the XAU Index would probably hurdle this 152-154 resistance level by early or mid-September. I am sticking to that forecast.
In the meantime, expect more of the same – just as I have been advising in recent commentaries. Look for the XAU Index to do more ‘backing & filling’, but one thing seems to be emerging from the XAU’s recent trading action. It is showing good strength independent of what’s happening to the precious metals. Therefore, look for the XAU to clear 152-154 before silver hurdles above $15 or gold clears $1,000.
The major trend for the XAU remains up.