spot gold

Spot Gold Weekly Chart 22 Nov 2010

The weekly chart gold chart once again confirms the bullish picture for gold and despite many analysts and commentators suggesting that the present bullish trend is over, from a technical perspective this is clearly not the case as evidenced by the weekly chart.  Whilst gold prices closed lower once again last week, the precious metal recovered well to end as a small hammer candle, closing above all four moving averages.  Both the 9 and 14 week averages look particularly strong, and the 9 week in particular provided a solid platform last week in the minor re-tracement.  In the short term we are now looking to see a bounce back and move higher and with gold currently trading at $1356.30 at time of writing, our first target is to regain the $1400 per ounce level and thereafter to re-test the high of two weeks ago of $1424 per ounce.  With all four moving averages pointing sharply higher the longer term trend for gold remains firmly bullish and, as such, we can expect to see a move towards to $1650 per ounce in the first quarter of next year.