GOLD at 7 year high $BAHVEST / 0098 (BAHVEST RESOURCES BERHAD) $POHKONG / 5080 (POH KONG HOLDINGS BERHAD) $TOMEI / 7230 (TOMEI CONSOLIDATED BERHAD) $DEGEM / 7119 (DEGEM BERHAD)

Gold prices are continuing to break out and closed on Tuesday at a fresh-7-year high. The US dollar moved lower on Tuesday paving the way for higher gold prices.

Technical analysis:
Gold prices moved higher closing above trend line resistance and continue to break out closing at fresh 7-year high. Support on the yellow metal is seen near the 10-day moving average at 1,737. Target resistance on the yellow metal is the August 2012 highs at $1,791. Short term momentum has turned positive as the fast stochastic generated a crossover buy. The current reading on the fast stochastic is 95, above the overbought trigger level of 80 which could foreshadow a correction. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).