Gold seems to be hedge funds’ best friend of late due to so much volatility in the stock markets.

Its chart has been very volatile since having climbed to record high 1014 on 17/3/2008 before it plunged to as low as 681 on 24/10/2008 with a whopping 300 points difference. Gold nearly breached its record high on 20/2/2009 before it retraced to the current level.

The trend line AB signals that Gold is still in the uptrend in the short term with support at 900. There is a likelihood Gold might breach the recent high of 1005 and test the major resistance at 1014 in the near term, especially so if the stock market continues to be bearish.