There was little action on the weekly spot gold chart last week with Friday bringing February to a close with a narrow spread down candle but with a deep shadow to the lower body.  Whilst the price action remained range bound during the week Friday’s close managed to hold above all of our four moving averages with good support coming from the 14 week in particular.  With plenty of clear water both to the 40 week and 200 week moving averages, there is little to suggest at present that the recent longer term rally has come to an end just yet.  However, we do need to see prices regain the high ground and in particular a break and hold above $1150 per ounce once again.  The shadow to the weekly candle suggests a modicum of bullish intent which is currently in the ascendancy but the price action on the gold chart still remains subdued.

Spot Gold Chart 1 March 2010

The daily chart echoes this analysis with Friday’s candle breaking back above all four moving averages but failing to breach the underside of resistance at $1125 once again.  As outlined in previous gold commentaries this is a worrying sign and once again in today’s gold trading session we have seen little price action either higher or lower.

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