Gold Trading Chart - Spot Gold Price 23rd August 2009

Even before the end of the  Jackson Hole Symposium at which the world’s central bankers expressed cautious optimism on the outlook for the global economy and the view that current ultra low interest rates could be maintained without generating excessive inflation, Friday’s gold trading session had already ended the day on a wide spread up bar.   This move reinforced our technical view that gold prices had found some support in the last few days at the 40 day moving average, and as a result provided the platform to the price move with the close of the day breaching all three moving averages and closing well above the 14 day moving average.   The only issues moving into Monday’s gold trading session is that Friday’s close ended at precisely the $953 per ounce level, apparently failing to penetrate the resistance level now in place at this price handle. For this move to be sustained we need to see this level breached, and should this occur on Monday, then we can consider small long positions on an intra day basis using the 30 minute and 60 minute charts, with a medium term target of $965, just below the next resistance level. Alternatively, should this fail to materialise, then we could see yet another pull back from this level.

Support: 943.20        Resistance : 958.50

Support: 930.73        Resistance : 937.86

Support: 920.64        Resistance : 929.78