Gold Price Chart 11 Nov 2009

Gold Price Chart 11 Nov 2009

Gold prices have now been rising for some 9 years in a row.  However, while the spot price of gold stands at fresh highs how will we know when the price is about to reverse?  One clue to any asset nearing its peak is its move from specialist financial media to the mainstream.  For example here in the UK television advertising for personal debt management has been replaced by a slew of companies encouraging consumers to sell their “unwanted” gold.  Although the gold chart has yet to turn parabolic, fingers should be hovering over the sell button for the first claim that gold bullion is facing a “new paradigm”.  From a technical perspecitve the upwards trend for spot gold prices shows no signs of slowing down, with another positive day for the commodity yesterday with the candle ending the gold trading session as a wide spread up bar, with no significant shadows to either top or bottom, suggesting that the move has considerable momentum with bullish buying clearly evident. With all three moving averages pointing sharply higher, and with signficant clear water to these technical indictors, the bullish trend is now extremely well established, and whilst there will be an inevitabel pull back in due course, for the time being it is simply a question of enjoying the ride ever higher, moving your stop losses up as you go to lock in profits.

Support & Resistance for the gold spot price:

S1:  1107.84   R1:  1121.48

S2: 1099.48   R2:  1126.76

S3:  1094.20  R3:  1135.12

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