Gold Trading Chart 26 August 2009

Gold Trading Chart 26 August 2009

Another confusing day of trading in the gold market, as gold prices rose in the early part of the trading session, only to fall later in the day, and close below the 9 day and 14 day moving averages once again. As outlined in yesterday’s gold market commentary, it is becoming increasingly difficult to forecast the future direction for gold prices, given the thin trading volumes ( particularly in the gold futures market), the lack of news and the general lack of trading due to the summer holidays which are all adding the uncertain and unpredictable price moves. Today, has once again left us with a bearish tone to the daily gold chart, ending the session with a small body to the candle and a deep upper shadow, with the high of the day once again failing to hold above the $955 per ounce, and with yet another lower high, adding to the weak technical picture. For any long term trend we now need to see a sustained breakout from this sideways consolidation, and indeed for any meaningful move we may have to wait until the early part of September as gold traders return in force to the gold trading market.  Until then the technical picture looks bearish, with intra day trading opportunities to the short side the order of the day for gold traders.

S: 965.05   R: 982.60

S: 944.90   R: 961.72

S: 905.85   R: 932.65