Gold Price Chart - Spot Gold Prices 1st October 2009

Just like silver the gold price ended higher yesterday, surging back above the $1000 per ounce level as I suggested in my gold trading analysis earlier in the week, and confirming the three consecutive hammer candles on the daily gold chart. Indeed the bullish signal was even stronger on the silver chart, which in this case was a bullish doji gravestone followed by a deep hammer – an extremely strong signal which duly delivered in the same way for spot silver. The key now ( as with silver ) will be whether the bullish momentum now in place can convert to a break and hold above the previous top at $1,020 per ounce, where the previous move stalled before, and given that the gold price is now firmly above both the 9 day and 14 day moving averages, this would suggest that this may occur sooner rather than later. Having broken through the minor resistance in the $1000 per ounce region yesterday, there is little congestion ahead to prevent a further rise in the gold price today, given the strong signals in both the gold and silver charts at present, and should the break above $1020 occur, then we will see the gold price making new highs in due course.

The short term outlook for the gold price is bullish, the medium term is sideways and the long term is bearish.

Support: $990.32   Resistance: $1020.23

Support: $983.45   Resistance: $989.76

Support: $966.65   Resistance: $982.35