Gold Trading Chart 28 Aug 2009

Gold Trading Chart 28 Aug 2009

Yesterday we saw gold prices break out of their recent consolidation pattern as a result of a weaker dollar, equity market strength and a surge in crude oil prices.   From a technical perspective the gold trading session ended the day on neat little up bar with a deepish lower wick.  The body of the candle broke through both the 9 and 14 day moving averages and the wick perched on the 40 day.  In addition the high of the day managed to pierce the $950 per ounce price handle – all good, positive signals for gold bulls.   However, before the bulls get too carried away we are now at the weekend as well as facing a bank holiday in the UK and month end when many traders and funds will be squaring positions so it may be prudent to wait gold trading resumes next week to see if yesterday’s minor breakout and momentum is maintained.  Have a great weekend.

Support: $930.35   Resistance: $955.67

Support: $918.23   Resistance: $929.89

Support: $905.43  Resistance: $917.90