20 Mar Wednesday Daily Outlook

Daily FIB level of 78.3 % at 38737 is broken and held, for now it should provide support. On upside, 39000 should act as an initial resistance and then if price follows a test of 39700 may be seen.

Fundamentally, Gold price continued to hold above 38500 level as world stock market struggled again amid fresh uncertainty and rumor over Euro-member Cyprus' banking crisis.

# Following Monday's jump in the Gold price "Whether this will be enough to push prices sustainably higher remains to be seen", notes the latest precious metal update from German refining group Heraeus.

"In the past, such measures fueled investors' uncertainty and gave a boost to bullion demand".

If we combine these with, if positive input for Gold, from tonight's FOMC Economic Projection, FOMC Statement and tomorrow's FOMC press conference where Fed Chairman Mr. Bernanke will be speaking, we may see Gold testing further up levels.

Happy Trading :)