Spot Gold Price Chart 26 March 2010

Very little to add to our recent commentaries as the spot gold price continues to meander in a narrow trading range with yesterday’s narrow spread up candle failing to provide any sign of an imminent breakout.  With all three of our short term moving averages now tightly bunched we need to be patient and wait for any breakout to be confirmed which would then signal longer term trend trading opportunities.  With the weekend ahead and little fundamental news we can expect another quiet day for spot gold and therefore little prospect of any significant price action.  The current price action on the gold chart is hardly surprising as March has traditionally not been a good month for gold and we may also have to wait for the start of the Indian gold buying season in April before we see any major moves in the price of spot gold.  Of greater significance has been this week’s CFTC hearings in the CFTC at which gold, silver & copper traders had been given an opportunity to testify on US metal futures,  which are predominantly traded on New York’s Comex exchange.  Bill Murphy, chairman of the Gold Anti-Trust Action Committee, said JPMorgan and HSBC held “large manipulative short positions” in precious metals on the Comex, and said burgeoning bullion demand threatened to lead to a “price explosion”.  Gold had hit a record of more than $1,200 an ounce in December.  Meanwhile , Jeremy Charles, HSBC’s global head of precious metals, acknowledged that although the the bank held short, or selling, positions in US futures it did so in order to  hedge the prices of gold and silver in its London vaults. JPMorgan declined to comment – full article is detailed below.

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Gold News:

CFTC refuses to place limits on banks & investment funds trading in metal futures

Gordon Brown ordered to explain decision to sell UK gold