Spot Gold Prices - Gold Chart 15th October 2009

An interesting day for the gold price which closed the gold trading session with a long legged doji candle, which may be a signal that the market is about to turn lower, and reverse some of the recent gains of the strong bull rally which has been a feature of the last few weeks. The long legged doji is a classic signal, suggesting as it does that the market has becoming indecisive as the bulls and the bears battle it out, and is often the first signal that a market has run out of steam and is about to turn. In this case, the recent rally in gold prices has been dramatic, so that any reversal lower would hardly be a great surprise as traders bank profits from the surge in gold prices, which has seen the price of gold rise from $950 per ounce in early September, to yesterday’s price of $1062 per ounce. With significant support below, any reversal lower is likely to be a short term technical correction, rather than any longer term change in sentiment for gold prices, and any pullback may be limited to a low of $1040 per ounce where a minor support level has been created. With all three moving averages pointing higher, the longer term outlook for spot gold prices remains firmly bullish, and any reversal is simply the market taking a rest, before moving higher once again 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