The gold spot price finally drew breath yesterday, ending the gold trading day at $1205.85 per ounce on a relatively narrow spread down candle, and which came as no great surprise given the surge higher in gold prices over the last few weeks. From a technical perspective the candle has little relevance, other than to suggest that the market is taking a rest as traders and investors bank some profits from the recent strong trend, and with the weekend ahead we may well see some further downwards price action today as gold traders square their positions. With all three moving averages still pointing firmly higher, and with plenty of clear water below yesterday’s closing price and the 9 day moving average, the technical picture remains firmly bullish and any pullback in gold prices should be seen as a longer term buying opportunity to enter the market for a continuation of the upwards trend. Remember the old trading adage that a price is ‘never to high to buy and never too low to sell’ – wise words!!
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Support & Resistance for the Gold Spot Price :
S1: 1198.13 R1: 1219.93
S2: 1190.41 R2: 1234.01
S3: 1176.33 R3: 1241.73
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