Spot Gold Price Chart - 2nd April 2009

Spot Gold Price Chart - 2nd April 2009

Another day of sideways movement for gold prices in trading yesterday, and whilst we finished the day with an up bar, the high of the day bounced off the cross of the 9 day and 14 day moving averages to close marginally below all three which are now tightly converging. Many analysts and traders have suggested that yesterday’s move higher in the price of gold was as a result of investors covering their short positions ahead of the G20 summit, with spot gold gaining 7.28 dollars to settle at $925.65/oz at the close. As I suggested yesterday, my advice is to step aside from the market until Friday, as with the G20 now in full swing, the ECB meeting later on today in Europe, and the US monthly job report on Friday, there will almost certainly be some volatile and unpredictable movements across all markets, and many traders and investors are now waiting on the sidelines, with thin trading volumes adding to the uncertainty. The statement from the G20 is due out this afternoon around 3.30, and whilst it is unlikely to have any surprising news for the markets, nevertheless, many are taking a ‘wait and see’ approach to trading at present. The most notable item of news will be if China and/or Russia make any progress in an effort to move the world away from the US dollar as the trade currency which would provide a huge boost to spot gold prices.

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

Support:    $916.37 (yesterday’s low)                                   Resistance: $945.32 (high of 26/03/09)

Support:    $911.10 (low of 31/03/09)                                   Resistance: $936.15 (high of 27/03/09)

Support:    $906.55 (low of 12/03/09)                                   Resistance: $933.20 (yesterday’s high)