Gold Spot Price - Daily Gold Chart For Spot Gold Prices 15th May 2009

The following commentary combines two days of gold trading technical analysis owing to problems with the internet.  Wednesday saw gold prices rise to a six week high of $930.60 per ounce on the back of safe haven buying as equity markets retraced, but in afternoon trading gold prices eased as the US gained against the Euro, as gold is usually inversely correlated to the US dollar, closing the day $1.27 down at $924.57 per ounce.  However, many analysts still believe that the gold chart is still showing bullish sentiment, with the 9 and 14 day moving averages above the 40 day, and supported by an increase in volume and additional volatility from both currency and equity markets.

Support:    $917.00 (yesterday’s low)                                   Resistance: $936.15 (high of 27/03/09)

Support:    $911.25 (low of 12/05/09)                                   Resistance: $933.20 (high of 01/04/09)

Support:    $895.30 (low of 06/05/09)                                   Resistance: $930.60 (yesterday’s high)

Thursday’s Gold Chart Analysis:

Following a quiet day’s trading spot gold prices managed to finish marginally higher gaining $1.08 on the day to settle at $925.60 per ounce, and from a technical perspective ended the day with an “inside bar” which suggests
further consolidation for the price of gold over the next few days.  Some support was seen from the producer prices data which showed higher than expected numbers adding to some inflation fears, but the longer term move for spot gold will come from the direction of the US dollar.  An excellent indicator for gold trading is the US Dollar Index which thus far has proved extremely reliable in forecasting the general direction for the US Dollar.  My trading suggestion for today is to look for small long positions on an intra day basis using the 15 and 30 minute chart, aiming for small profit targets and using tight stop losses.

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

Support:    $919.95 (yesterday’s low)                                   Resistance: $936.15 (high of 27/03/09)

Support:    $911.25 (low of 12/05/09)                                   Resistance: $933.20 (high of 01/04/09)

Support:    $895.30 (low of 06/05/09)                                   Resistance: $928.60 (yesterday’s high)