Gold Prices 15 Oct 2009

Gold Prices 15 Oct 2009

The long legged doji candle of Wednesday did indeed signal a reversal in the current bullish trend, with spot gold prices moving sharply lower in yesterday’s trading session, ending the day with a wide spread down candle, which confirmed the short term bearish sentiment. However, before the gold bulls become too worried, it is interesting to note that the low of the day found support from the 9 day moving average, suggesting that this reversal may only be a short lived technical pullback, and not a longer term reversal of the bullish trend. With all three moving averages still pointing sharply higher, and with the support for today’s candle evident, then the signs are good that this may simply be the market taking a breather following the steep rise of the last few weeks, and as a result we should see spot gold prices move higher once again in due course. The key of course will come today, as to whether we see the minor support level at $1048 will absorb the selling pressure and provide a platform for a bounce higher and a continuation of the bullish trend in due course.

The short term outlook for spot gold prices is bearish, the medium term is sideways and the long term is bullish.

Support: $1048.67    Resistance:

Support: $1018.73    Resistance: $1047.96

Support: $1005.36    Resistance: $1017.67