spot gold price

Spot Gold Price Chart 10 Aug 2010

Once again in gold trading today the high of the spot gold price has been capped by the 40 day moving average but the candle formed at the end of the gold trading session should give gold traders cause for optimism for a number of reasons: first the lower wick of the candle is perched neatly on the 9 day moving average.  Second the 14 day moving average has now crossed above the 9 day thereby adding a degree of bullish intent and finally the depth of the lower wick would suggest that gold prices may finally be ready to break back strongly above the $1200 price point.  From a fundamental perspective this evening’s FOMC meeting which confirmed a poor outlook for the US economy as well as a resumption of quantitative easing can only help to boost the gold price once again.  Traditionally gold has always been seen as a hedge against inflation which is unlikely in the short term despite the FED’s best endeavours, and its appeal at the moment is based on an assumption that the threat from financial armageddon has still not faded away.

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Western economies more at risk from deflation