Spot Gold Price - Daily Candle Chart 27th March 2009

Spot Gold Price - Daily Candle Chart 27th March 2009

Spot gold prices finished marginally lower yesterday on the daily candle chart, losing a mere 78 cents in a day dominated by indecision as markets participants didn’t want to commit too much capital and instead preferred to stay on the sidelines, scrutinising Washington for the next direction. The candle closed marginally below the 9 day moving average, and slightly above the 14 and 40 day moving averages but with a long upper wick, suggesting that we may see a slight fall in gold prices today. Some analysts are already suggesting that as long as US Treasury Secretary Geithner wins the approval for his proposed reforms, then spot gold may come under pressure. Recently Fed officials increasingly concluded that inflation will be mild at least in the short term and that this could also undermine gold prices longer term.

From a technical perspective, the tone at the moment is sideways, and with the weekend ahead, followed by some heavyweight fundamental news next week, topped off by the G20 in London, this is likely to remain the pattern for the next few days. Many traders are now waiting on the sidelines for next weeks to unfold, and as a result trading volumes today are likely to be very thin, as traders square their positions ahead of the weekend. My advice for today, is to trade very small positions on an intra day basis only, using short time frame charts to buy and sell, either on the 15 minute or the 30 minute, as we are unlikely to see any large swings in he price of gold today. In my view the longer term position is still bullish, and I will take a look at the weekly chart on Monday for you – have a great weekend and good tradin and remember you can find the latest gold price by following the link.

The short term trend is sideways while the medium and long term trends are bullish.

Support:    $928.99 (14 day moving average)                             Resistance: $957.50 (high of 23/03/09)

Support:    $911.65 (low of 17/03/09)                                   Resistance: $948.80 (high of 18/03/09)

Support:    $906.55 (low of 12/03/09)                                   Resistance: $945.32 (yesterday’s high)