Gold Prices - Daily Candle Chart 31st March 2009

Gold Prices - Daily Candle Chart 31st March 2009

Spot gold prices moved in a wide trading range between a low of $910 and a high of $932 on the day, eventually closing slightly down overall and leaving us with a long legged doji candle reflecting the indecision in the market on the gold chart.   The close of the day finished below all three moving averages which are now tightly converged around the $935 per ounce region.  Following the retracement of the last 6 days this could now suggest that we are about to see a rise in the spot gold price over the next few days given that the support level at the $910 and above region seems to be holding firm.  If this is the case then we could see a move back to retest the $950 support area but if prices do fall further then we could see the support area at $890 come into play once again.  Trading at the moment is tricky due to the heavy congestion area following the period of sideways movement that we have seen throughout March and until we see a breakout above the $950 price level or below $890 we cannot trade with any degree of certainty. In addition the present correlation between stock market performance and commodities is also a factor which gold traders need to consider when making their trading decisions and is also adding extra volatility to intra day price moves.

Support:    $908.05 (yesterday’s low)                                   Resistance: $945.32 (high of 26/03/09)

Support:    $906.55 (low of 12/03/09)                                   Resistance: $936.15 (high of 27/03/09)

Support:    $904.85 (low of 03/03/09)                                   Resistance: $932.05 (yesterday’s high)