Gold Prices 13 Oct 2009

Gold Prices 13 Oct 2009

Yesterday’s dollar weakness helped to move the spot gold price marginally higher which ended the gold trading session as a narrow spread up bar but with a relatively deep shadow to the upper body.  The bearish signal indicated by last week’s shooting star can now be ignored as the market has failed to validate this signal and has simply moved  higher over the last three days, and whilst there is an element of the gold price tiring and perhaps running out of steam in the short term the overall bullish sentiment still seems to be firmly in place.  However, with two of the last four candles exhibiting a degree of weakness on the day we do need to factor this into our medium and longer term gold trading strategy.  The move higher for spot gold prices is fully supported by all three moving averages and there is plenty of clear water below the current low and the 9 day moving average to take account of any short term reversal lower without breaking the overall bullish trend for spot gold prices.