Gold Price Chart - Gold Price Currenct 4th October 2009

Gold Price Chart - Gold Price Currenct 4th October 2009

An interesting day and end to the week for the gold price on Friday, which was heavily influenced by the release of the Non Farm Payroll data which created the usual volatile swings in the market, as the markets react first, and then digest the data in a more considered way, all of which generally translates into a sudden and initial move in one direction, followed by a reversal shortly afterwards. Spot gold prices followed a similar pattern on Friday, and as a result ended tha trading session marginally higher but with a very deep lower wick to the downside, with the low of the gold trading session once again finding support in the $985 per ounce region. This suggests that as a result we should see the gold price rise in the next few days ( if not today ) as clearly the bullish sentiment for spot gold is clearly evident from Friday’s price action, with the gold bulls buying on any reversal lower, clearly signalling a move higher. This analysis is reinforced by the fact that the open of the day found good support from the 9 day moving average, coupled with the fact that the low once again bounced off a previous support price which confirms this analysis. As a result we should expect to see the gold price rise in the short term, and ideally we are now looking for a break and hold above the $1,018 per ounce price point which will then confirm that the bullish momentum has been firmly re-established and we can then look for gold prices to break out into new high ground in the medium term

The short term outlook for the gold price is bullish, the medium term is bullish and the long term is sideways.

Support:  994.35   Resistance:  1018.78

Support:  984.26   Resistance:    992.46

Support:  964.15   Resistance:    983.05