Gold Trading Chart - Gold Prices 20th August 2009

A somewhat desultory day for gold trading today which ended the trading session in a tight range bounded between the 9 and 40 day moving averages.  Technically today’s candle was similar in many respects to yesterday’s with a relatively narrow body and lower shadow although today’s was less marked than Wednesday’s.  The noticeable similarity between the two is the support that gold prices seem to have found from the 40 day moving average, and despite today’s marginal fall in spot gold prices the overall picture still remains mildly bullish for tomorrow and as a result we may expect to see a small rise once again.  Naturally with gold prices trading in the $910 to $965 region at some point we will need to see a sustained breakout in order to confirm any change in sentiment and the establishment of a new trend.  In the meantime gold trading will be limited to short term intra day opportunities.  The usual caveat applies as gold traders will be looking to square their positions ahead of the weekend and given that we are still deep in the summer lull gold futures may be even thinner than usual with consequent volatile and random moves on any minor fundamental news item.

The short and long term is bullish, the medium term sideways.

Support:    $936.95 (yesterday’s low)                                   Resistance: $952.20 (high of 12/08/09)

Support:    $931.70 (low of 19/08/09)                                   Resistance: $948.10 (high of 17/08/09)

Support:    $929.85 (low of 17/08/09)                                   Resistance: $945.65 (yesterday’s high)