Gold and other metals were tanking, now recovering; Dollar up again

Consider this a possible buying opportunity. The bottom of the metals market will NOT be zero.

http://www.kitco.com/market/

Metal Bid Ask
Gold $1,128.80 $1,129.80 ($13.10)
Silver $17.41 $17.46 ($0.34)
Platinum $1,417.50 $1,427.50 ($14.90)
Palladium $361.00 $366.00 ($9.40)

Updated:12/9/2009 2:58:13 PM CST

Euro Faces ‘Bearish Setup’ Against Dollar: Technical Analysis
By Chris Fournier

Dec. 9 (Bloomberg) -- The euro may drop against the dollar to a level last reached in August if it fails to rally past resistance levels, according to Citigroup Inc.

The euro is facing a “bearish setup” versus the greenback, with a large gap between the 55- and 200-day moving averages, Citigroup’s Tom Fitzpatrick and Aron Gera in New York and Shyam Devani in London wrote in a note to clients today, citing momentum indicators.

“Overall, we continue to expect a test of the 200-day moving average, which is now at $1.4118,” the analysts wrote. That would be a drop of more than 4 percent from yesterday’s close of $1.4704.

Investors should watch the resistance levels at $1.48, then a “double-top neckline” at $1.4827 and the 55-day moving average at $1.4854, according to Citigroup.

“A failure to rally through these levels would be an interesting development suggesting a turn back down is likely,” the analysts wrote.

The dollar breached the neckline of a double top versus the euro earlier this week, the analysts wrote. A double top forms when a currency make two consecutive peaks. A break of the neckline, the trough between the peaks, often indicates a further advance may be coming.

http://www.bloomberg.com/apps/news?pid=20602081&sid=atEwnRxR...