Gold Spot Price Chart 7 Jan 2010
A slightly worrying technical picture is beginning to develop for gold bugs, because, for the second day in a row, the 40 day moving average seems to be offering a degree of resistance to any move higher for the spot gold price at present. This apparent resistance also coincides with a minor barrier at the $1135 per ounce level and for the current upwards trend to be maintained we need to see this level breached with a consequent break above the 40 day moving average. However, this temporary pause, and possible weakness, is counterbalanced by the 9 day moving average which has now crossed above the 14 day moving average, giving is a bull cross signal, a positive sign, and provided we see a break and hold above the 40 MA in due course, then the rally should continue with the spot gold price moving higher in the short term. In the medium term a break and hold above $1150 will signal that the move is gathering pace, and with the developed support platform below, should provide a springboard for spot gold prices to snap back very quickly and recover the highs of $1200 per ounce and above in due course.
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Support & Resistance for Spot Price Gold (Daily Chart)
S1: 1122.94 R1: 1134.76
S2: 1119.00 R2: 1142.64
S3: 1111.12 R3: 1146.58
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