Spot Gold Price : Weekly Chart 18 Jan 2010

Spot Gold Price : Weekly Chart 18 Jan 2010

The weekly chart for the gold spot price is still dominated by the deep hammer candle of late November which triggered the technical fall in gold prices towards the end of last year which saw them move from the $1230 per ounce peak to marginally below $1100 per ounce.  It is interesting to note that the pullback was halted by the 14 week moving average which provided solid support and indeed also assisted the wide spread upbar of 2 weeks ago which prompted an initial recovery from December’s lows.  This candle also broke above the 9 week moving average, re-establishing gold prices all three moving averages once again.  Whilst last week’s gold prices moved lower it was the 9 week moving average that on this occasion provided support suggesting that we could see a further rally in the spot gold price during this week but only a break and hold above the $1150 per ounce price handle will suggest that the rally is likely to have to momentum in the short term.  For the longer term, and as outlined earlier, the deep shooting star remains dominant and until this technical reversal is breached, with momentum, then trading to the long side needs to be treated with some caution.

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Support & Resitance for the weekly gold spot price :

S1:  1112.11    R1:  1154.56

S2:  1094.33   R2:  1179.23

S3:  1009.66   R3:  1197.01