Spot Price of Gold 29 Oct 2009

Spot Price of Gold 29 Oct 2009

Like many other commodities yesterday, spot gold prices put in a strong performance recovering much of the lost ground of the last few days, and ending the gold trading session with a wide spread up candle closing marginally below the 9 day and 14 day moving averages which are just ahead. As suggested earlier in the week, the 40 day moving average was once again the catalyst for the reversal higher, with Wednesday’s candle providing an early warning signal as the low of the day bounced of this important technical indicator, suggesting that the reversal lower was merely a short term correction in a much longer term bull rally, with yesterday’s candle reinforcing this analysis in dramatic style!  With the bullish engulfing candle now evident, and with the strong support below both from the recent consolidation and also the 40 day moving average, we now need to wait for a break and hold above the minor top establised at $1070 per ounce, and once this has been breached ( which may come as early as next week) then the bullish trend for spot gold prices should continue with renewed vigor as we head towards the end of another gold trading year.

R1:  1052.92       S1:  1033.88

R2:  1059.69       S2: 1021.61

R3:  1071.96       S3: 1014.84