Spot Gold Price Chart 19 Nov 2009

Spot Gold Price Chart 19 Nov 2009

A cautionary note was signalled from yesterday’s trading in the gold spot price on the daily gold chart, with the trading session ending with a hanging man candle, which followed the small shooting star candle of Wednesday, suggesting that we may be about to see a sell off in spot gold as a result as the market struggles to move higher from this lofty level. However, before we all panic, any move lower is likely to be a pullback in the otherwise strong bull trend, as only a break and hold below all three moving averages would signal a major change in sentiment in the gold market.  Any other price move will simply indicate a market that is taking a breather, with traders and investors banking profits and closing positions ahead of the weekend. Should we see a fall either today or early next week then the first line of defence will be the 9 day moving average with the 14 day as a second level, with the minor potential support level now established in the 1,120 price point below. So in summary, given the signals of the last few days we can expect to see a fall in spot gold prices in the short term, but that this will simply be a not unexpected correction in the otherwise longer term bull trend.

S1:  1133.69    R1:  1149.61

S2:  1123.78   R2:  1155.62

S3:  1117.77   R3:  1165.53

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