Spot Price of Gold 22 Oct 2009

Spot Price of Gold 22 Oct 2009

Gold prices continued to hover in the 1050 to 1060 price level once again yesterday, but ended the gold trading session marginally higher and with a lower wick to the body of the candle. Whilst the indecision and sideways movement is a worrying sign for gold bulls, yesterday’s candle gave us another positive signal that this is simply the market taking a breather before moving higher, with the low of the day once again finding strong support from the 14 day moving average. This is a good sign, and suggests that the bullish trend will continue with renewed strength, as any intra day reversal lower is being met with strong buying on the dips, and we should therefore see this temporary pause point breached in due course, and once cleared, see spot gold prices break out into new high ground once again. We may have to wait until next week for this, as with the weekend ahead gold traders may be squaring their positions and looking towards the main fundamental news on the economic calendar as we head towards the end of October.