Gold Spot Chart 3 Nov 2009

Gold Spot Chart 3 Nov 2009

An excellent day for spot gold priceswhich surged higher once again, ( and as expected ) breaking through the recent short term resistance level in the $1,070 per ounce region, and ending the gold trading session with a wide spread up candle in new high ground. As suggested in some  of my recent gold market commentaries, the recent pause point was nothing more than the market taking a breather before moving higher once again with the daily gold chart now creating a perfect pattern of lower highs and lower lows typical of a long term bullish trend.  Gold prices have, of course, also been boosted by the recent IMF sale of 200 tonnes to India.  However, it has been more a case of the fundamentals playing catch with the technical picture.   In addition the upwards trend is now well supported by the 40 day moving average, another excellent signal that we should expect to see spot gold prices continue to break into yet further new high ground as we approach the end of the year, with the recent resistance now providing a solid platform of support and an excellent place to position your stop losses as we pull away from this level in due course.

R1:  1095.23     S1:  1062.46

R2:  1107.91     S2:  1042.37

R3:  1128            S3: 1029.69

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