Home » Daily Gold Price » Spot Gold Price – Daily Gold Chart 25th May 2009

Spot Gold Price – Daily Gold Chart 25th May 2009

gold chart 25th may 2009

gold chart 25th may 2009

Historically spot gold prices tend to slide in late May and languish through the summer primarily because of the seasonal ups and downs of jewellery demand.  Trader reaction would normally be to go short particularly as the spot gold price has risen by more than $90 this month.  However, this year traders may wish to review this strategy on the news that the world’s top hedge fund manager, John Paulson, has bought $2.9bn in SPDR Gold Trust, the biggest of the gold exchange traded funds (ETFs), which now hold 1106 tonnes of the precious metal.   With the UK becoming the first of the world’s top economies to suffer a downgrade to its “AAA” status the contagion appears to be spreading upwards through the financial food chain.   From a technical perspective spot gold prices continued to rally on Friday and hit a two month high of $961.42 per ounce as the US dollar came under sustained selling pressure but even as traders closed their positions ahead of the extended holiday in the US and the UK spot gold prices still managed to close $3.85 higher to settle at $956.35 per ounce on the gold chart.  With many of the major markets closed today and with very little in the way of fundamental news on the economic calendar it is unlikely that we will see much in the way of price action on the gold chart and therefore I would suggest waiting until tomorrow before we can draw any meaningful conclusion from the daily analysis of spot gold prices.  What is encouraging from a bullish perspective, longer term, is that Friday’s price broke through the minor resistance at $948 created back in early March and this therefore adds weight to my view that we will see a run at the $1000 per ounce level in due course.

The short term is sideways, medium and long term bullish.

Support:    $949.60 (Friday’s low)                                      Resistance: $967.00 (high of 20/03/09)

Support:    $946.05 (low of 20/03/09)                                   Resistance: $962.50 (high of 19/03/09)

Support:    $935.55 (low of 21/05/09)                                   Resistance: $961.42 ( Friday’s high)