Gold Price Chart 23 Oct 2009

Gold Price Chart 23 Oct 2009

Gold prices ended the day and the week once again oscillating between the $1050 and $1070 price region, as gold once again struggled to break higher for the second week in a row, a worrying sign for gold bulls, as we have now seen four failed attempts to breach this price band in the last two weeks. This bearish sentiment is also echoed in the weekly chart with two consecutive shooting star doji candles, which once again suggest that gold prices may be pausing at this price level, with a short term reversal lower likely, before moving higher once again in the medium term. However, the picture is far from clear at present as the low of Friday found some support from the 14 day moving average, and for some clear direction we now need to wait for a break and hold above the new resistance level now being establised at the $1070 price level.  Alternatively the depth and extent of any move lower (should this occur) will probably be dictated by the 40 day moving average.  My own view is that we will see a short term move lower, followed by a steeper move higher in due course, and the current gold market price action will simply be the next leg up in a series of higher highers and higher lows – typical of a long bull trend.