Gold Prices - Daily Candle Chart 24th February 2009

Gold Prices - Daily Candle Chart 24th February 2009

Gold prices headed south in early trading yesterday as some investors decided to take profits off table pushing the price of gold to an intraday low of $975.05/oz. The move brought in bargain hunters and a sell off in the equities markets, and with the Dow Jones making fresh recent lows, this triggered a renewed flight to quality buying in gold which managed to recover a big part of the early losses closing nearly 9 dollars down for the day. With the weak global demand making headlines on a daily basis the outlook for gold remains positive.  The daily candle closed well above all three moving averages and the bullish trend therefore remains strongly in place. Whilst the day ended on down note, the long lower wick suggests that we should see prices move higher today, and it is interesting to note that despite the fall in prices yesterday, the opening price was in fact gapped up from Friday’s close, which is another good signal for us as traders.

The short, medium and long term trends are all bullish.

Support:    $975.05 (yesterday’s low)                                   Resistance: $1007.55 (high of 14/03/08)

Support:    $968.53 (9 day moving average)                              Resistance: $1006.25 (high of 20/02/09)

Support:    $960.30 (low of 18/02/09)                                   Resistance: $998.20 (yesterday’s high)