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Gold Trading 6 Sep 2010

spot gold price

Spot Gold 6 Sep 2010

The bullish sentiment for spot gold continued apace last week and Friday’s candle was no exception with a test to the downside promptly being seen as a buying opportunity by the gold bulls.  Friday’s candle, as such, ended as a narrow spread down candle but one with a deep lower wick which found strong support from the 14 day moving average confirming the bullish trend remains firmly established.  The only question for spot gold is how quickly the precious metal will break out into new high ground and breach the $1265.05 high of mid June as a result.  As we now enter the traditional gold buying season then this should provide some additional momentum for spot gold and, as such, from both a technical and fundamental view, provide the impetus to drive gold above and into a new price region. The rise in gold prices, particularly over the past few days, is somewhat at odds with the current “risk on” appetite of investors, particularly in equities, as traditional correlations would suggest an increase in stocks is reflected by a decline in gold, the primary safe haven at time of financial crisis.  It is therefore slightly odd to see both equity markets and gold rising in tandem and therefore both should be viewed with some caution as the spot gold price approaches its all time high price.

Is gold really a safe haven?