Spot Gold Daily Prices - Candlestick Chart 13th January 2009

Spot gold prices closed sharply lower yesterday breaking below the 40 day simple moving average as the US dollar strength, and a continuing weakness in crude oil, proved difficult to ignor by the market participants. Recently, gold has attracted buying interest following the clash between inflation and recession, but now the yellow metal looks pressured by fund liquidation. Traditionally seen as a hedge against a falling US currency, gold is likely to remain under pressure in the short term if the dollar does indeed move higher. The short term trend is sideways, the medium term trend is bearish while the long term trend is bullish.

Support:    $814.65 (yesterday low)                                   Resistance: $864.60 (high of 08/01/09)

Support:    $807.05 (low of 12/12/08)                                 Resistance: $856.65 (yesterday high)

Support:    $800.00 (psychological level)                             Resistance: $836.10 (low of 08/01/09)

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