Gold Price 15 Sep 2009

Gold Price 15 Sep 2009

Another interesting day for gold traders yesterday, with spot gold prices once again flirting at the $1000 per ounce level, initially opening gapped up above this price point, but finally ending the gold trading session marginally below.  From a technical perspective yesterday’s candle ended with a narrow spread down bar but with a relatively deep lower wick which found support from the 9 day moving average in much the same way as for Thursday’s candle last week, suggesting that the bullish momentum remains intact for the time being despite what the pessimists (and UBS) are suggesting.  This bullish momentum has been given added impetus by news that central banks are set to become net buyers of gold this year for the first time since 1998.  With all three moving averages pointing sharply higher and with the technical support outlined above we should see spot gold prices breach and hold the 4 figure level in due course before moving higher in the medium term and my trading suggestion for today is to look for small long positions on an intra day basis buying on any dips and particularly where the price touches the 9 day moving average.

Support:   984.50        Resistance:  1010.60

Support:   964.70        Resistance:  982.78

Support:   944.80         Resistance:  963.25