Spot Gold Price Chart - Daily Gold Prices 2nd July 2009

Once again spot gold prices moved in tandem with the US Dollar which came under pressure following release of the ADP numbers which showed the private sector had shed 473k jobs against a forecast of 388k.  Reports that China wants the G8 to discuss a new global currency also boosted the price of gold which is, of course, the world’s supreme hard asset.  Interestingly spot gold carried on rising even as crude oil prices fell.  Overall gold ended the session $11.67 higher at $940.87 per ounce.  Technically the gold chart continues to remain in a delicate position with yesterday’s candle closing above the 9 and 14 day moving averages and reversing Tuesday’s losses in an engulfing pattern.  However, given the general lack of direction and today’s likely volatility we may see further confused and conflicting trading signals on the gold chart.  My trading suggestion is to step aside for today and tomorrow and wait for a firm trend to be established once again which is clearly not the case at present.

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

Support:    $927.30 (yesterday’s low)                                   Resistance: $961.87 (high of 11/06/09)

Support:    $917.85 (low of 22/06/09)                                  Resistance: $958.20 (high of 12/06/09)

Support:    $912.70 (low of 23/06/09)                                   Resistance: $946.60 (yesterday’s high)