Home » Daily Gold Price » Spot Gold Prices – Daily Gold Chart 11th June 2009

Spot Gold Prices – Daily Gold Chart 11th June 2009

Gold Spot Price - Daily Gold Chart 11th June 2009

The high correlation between spot gold prices and the US dollar continues to be mirrored in the gold chart with spot gold falling as the dollar strengths but rising whenever the dollar weakens.    In addition spot gold also appears to be suffering from a bout of profit taking as “stale longs” are liquidated as investors wait on the fate of the US dollar.  As a consequence spot gold prices fell yesterday $2.90 having at one point reached an inter day high of $958.08.  From a technical perspective yesterday’s candle mirrored that of Tuesday ending the session as a long legged doji once again indicative of indecision in the market and general consolidation in the $940 to $980 region.   As outlined in yesterday’s market commentary, despite the fact that we had two bearish signals last week, once again, these have failed to be confirmed by the price action.   For various reasons, the market seems disinclined to follow through on these signals at present, and instead is finding supporting in the $950 to $955 prices region which may provide the springboard to any move higher in due course, despite the fact that the daily close of the last four days has been below both the 9 and 14 day moving averages which are now converging.  We now need to wait for any sustained move from this current trading range which may well prove to be to the long side, but until this is confirmed I would advocate a cautious approach in the short term.

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

Support:    $946.63 (yesterday’s low)                                   Resistance: $989.95 (high of 03/05/09)

Support:    $935.55 (low of 21/05/09)                                   Resistance: $980.17 (high of 29/05/09)

Support:    $924.75 (low of 20/05/09)                                   Resistance: $965.40 (yesterday’s high)