Spot Price of Gold 26 Oct 2009

Spot Price of Gold 26 Oct 2009

Gold prices broke lower yesterday, as the $1070 per ounce price handle finally became too much, with the precious metal ending the gold trading session with a wide spread down bar, breaching both the 9 day and 14 day moving averages which are now crossing as a result, and giving us a mildly bearish picture in the short term.  As outlined in yesterday’s gold market commentary, this move lower should come as no great surprise to gold traders, given the four failed attempts to breach this price level in the last two weeks, but with the deep support platform now in place below this should only be seen as a temporary ‘blip’ to a further move higher, as the market gathers strength to break above this level in due course. Indeed as outlined last week, this price level will almost certainly be seen  as a pause point as the daily gold chart creates a series of higher highs and higher lows in a typical bull trend pattern for spot gold prices.