Spot Gold Price - Gold Price Trend 29th September 2009

Spot Gold Price - Gold Price Trend 29th September 2009

Once again the gold price traded in a narrow range yesterday, initially threatening to move lower in early trading, and subsequently recovering early losses to close marginally higher on the day, and ending the gold trading session with a repeat of Friday and Monday’s candle pattern – a narrow spread body with a deep lower wick.  What is interesting from the last three days, is that on each occasion the low of the trading session seems to have found strong support in the $985 per ounce region, suggesting once again that we will see a bounce higher in due course, as it is clear from the last three days, that any selling pressure is being absorbed by the market and the gold bulls.  With the gold price now sandwiched between the 9 and 14 day moving averages above, and the 40 day moving average below, any move higher will need to be validated by a break and hold above the 9 and 14 moving averages which are currently beginning to cross at the start of which could be a bear cross signal.  Any longer term gold traders will need to wait to see if this is achieved, and preferably combined with a break above the previous top of the recent rally on the $1018 per ounce region.  Should the latter occur in due course then we can assume that the bullish sentiment has fully returned and should therefore expect to see the gold price trading higher in the short to medium term.

The short term outlook for spot gold prices is bullish, the medium term is sideways and the long term is bearish.

Support: $990.32   Resistance: $1000.89

Support: $983.45   Resistance: $989.76

Support: $966.65   Resistance: $982.35