Home » Daily Gold Price » Spot Gold Prices 28 July 2009

Spot Gold Prices 28 July 2009

Gold Chart 28 July 2009

Gold Chart 28 July 2009

According to the World Gold Council India may soon lose its status as the world’s largest gold consumer later this year to China which is showing an ever increasing demand for jewellery.  The Indian gold market has been hit by a weaker Rupee, which has put up the cost of owning gold bullion, taxation and a fall off in demand for jewellery.  Gold trading on Monday saw gold futures for August rise $3 or 0.3% an ounce pushing spot gold prices as high as $960 per ounce, last seen on June 11th. Overall spot gold prices gained 1.5% last week and have risen 8.7% so far this year, mirroring the advance in other commodities, such as oil and copper.    From a technical perspective yesterday’s gold chart saw prices continue to move in a relatively tight trading range, ending the session marginally higher, but once again with a deep upper shadow.  This recurrent price action is increasingly suggesting weakness in the daily gold chart, as this is now the sixth consecutive time that we have seen gold prices attempt to rise, only to fall later in the trading session.  Whilst the moving averages are providing a degree of support to the attempt to move higher, the resistance level at the $953 to $955 price handle remains intact, and seems to be offering an impenetrable barrier to any move higher at present, and indeed this could be the harbinger of impending weakness.  Until we see a strong trading signal, then I would suggest a wait and see approach is the best option at present.  Should the above level be broken, then we could see a renewed effort to push higher, however, if this fails to occur, which seems to be the case at present, then a move lower seems more likely, and a re-test of the support level at the $935 price point in due course.

The short and medium term sideways, the longer term bullish.
Support  945.34       Resistance : 955.67
Support : 933.34      Resistance : 942.65
Support: 920.67       Resistance : 929.89