Home » Daily Gold Price » Spot Gold Prices – Daily Candle Chart 6th April 2009

Spot Gold Prices – Daily Candle Chart 6th April 2009

Gold Prices Daily Chart - 6th April 2009

Gold Prices Daily Chart - 6th April 2009

Friday’s candle ended the session with a wide spread down bar, eventually closing at $891.90 per ounce on the day and well below all three moving averages, confirming that the bearish engulfing signal we first saw Wednesday, is now taking full effect in the spot gold chart. More significantly, spot gold prices broke through the immediate support region at $895, suggesting that we will now see a move back lower to re-test support at the $855 in the short term, with the move on Friday seen as closing of positions ahead of the weekend coupled with an increased optimism in the equities markets. So an improved tone for equities seems to be holding back the price of gold since it means less safe haven buying. Some analysts also mentioned concerns about potential IMF sales of gold as a possible bearish influence following a G20 statement saying the financial needs of low-income countries could be funded with money coming from gold sales.

My suggestion for today’s gold trading is therefore to attempt small short positions, with your stop loss set above the new resistance level now in place above, possibly as high as $940 or above. Use the hourly intra day charts for your entry and exit positions, taking profits off the table or by using a trailing stop loss to lock in profits, as I believe the bearish tone will only continue in the short term, and that in due course, we will see a reversal back to the bullish sentiment of the last few months. The key to the longer term will be if the support level at $855 is breached, which could signal a further fall to re-test gold prices just above the $810 region.

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

Support:    $891.90 (Friday’s low)                                      Resistance: $936.15 (high of 27/03/09)

Support:    $882.90 (low of 18/03/09)                                   Resistance: $913.30 (high of 11/03/09)

Support:    $866.80 (low of 29/12/08)                                   Resistance: $909.85 (Friday’s high)