Gold Prices 19 Oct 2009

Gold Prices 19 Oct 2009

Spot gold prices moved higher on Monday as I suggested they might in Friday’s gold commentary, following the deep hammer candle at the end of last week which indicated a possible reversal and lack of selling pressure in the market. Indeed yesterday’s price action was comforting for gold bulls, as not only did yesterday’s candle confirm the hammer reversal, but it  ended the gold trading session with a deep lower wick which suggests that any selling is being absorbed as we now look for spot gold prices to push higher once again, and break above the previous top at 1066. The analysis is further reinforced by the open of the day which found good support from the 9 day moving average which is always a good technical signal that the trend remains firmly in place and as a result we should see gold prices push higher during the remainder of the week.