Gold Spot Price Chart 7 Jan 2010

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