Gold Spot 2 Nov 2009

Gold Spot 2 Nov 2009

A strong day yesterday for gold traders with spot gold prices moving sharply higher, and ending the trading session with a solid and wide spread up candle which reinforced the bullish sentiment in the market once again. This followed hard on the heels of two bullish signals from last week, firstly as gold prices found support from the 40 day moving average mid week, and second with the bullish engulfing candle of Thursday, which reinforced this analysis.  With yesterday’s candle having breached both the 9 and 14 day moving averages, the picture now looks very promising for a break above the interim top in the $1070 per ounce price handle once again, and should this occur, as expected in the next few days, then spot gold prices will once again have broken into new high ground, with a solid paltform below for a continuation of  the upwards trend. However for longer term trend trading I would advise a degree of caution and wait until we have establised some ‘clear water’ above this resistance level, which will then offer the protection required for any short term reversal lower.  If you are looking to start gold trading on the best trading platform, then try the free MT4 download which is available from this excellent gold broker by simply following the link here.

R1:  1069.11     S1:  1048.71

R2:  1076.10    S2: 1035.30

R3:  1089.51     S3: 1028.31