Gold Chart 24 July 2009

Gold Chart 24 July 2009

Yesterday’s candle on the daily spot gold price chart, ended the trading session with a bearish ‘shooting star’ signal, suggesting once again that gold prices are now struggling to move higher from this level, which is an increasingly worrying sign.  For the fourth time in a row, gold prices attempted to move higher during the day, only to fail at the $955 – $957 price point, with the shooting star of yesterday being the clearest indication yet, that the resistance in place at this level is proving to be a difficult obstacle to overcome. Whilst the crossing of the 9 day moving average above the 40 day average is an encouraging sign, the failures at this level are now suggesting that we may see a pull back in due course, possibly to re-test support at the $935 price level.  With two doji candles and a shooting star this week already, then any reversal is likely to happen sooner rather than later.  My suggestion for today is to step aside, given that many gold traders will be squaring positions ahead of the weekend, and to then wait for the above signal to be validated.    Moreover, with spot gold prices now trading at such a sensitive price level it may be time to look more closely at both the weekly and monthly charts.

Support   939.16           Resistance  954.28
Support   924.63           Resistance  939.15
Support   907.57           Resistance  923.18