Gold Spot Price Chart - Current Gold Prices 7th May 2009

Yesterday the gold spot price closed $13.55 higher at $910.40 per ounce on a wide spread up bar which closed above all three moving averages and more importantly breaking through the resistance in the $905 to $910 price region.  Whilst there is considerable congestion and resistance ahead, this was an encouraging sign for gold bulls and the move is now fully supported by all three moving averages although it must be noted that with the tight convergence of the last few weeks these technical indicators carry less weight at present than usual.  For a sustained move higher we will need to see a break above the $924 price point and if this is achieved then we could see an attempt to move back to re-test the $950 price level once again.  Fundamental factors credited with boosting the gold spot price include investor worries about the results of the forthcoming bank stress tests and strength in other metals.   With the results due out today and with rumours suggesting that some of the major US banks will require significant injections of cash in order to remain viable this could be a good day for buying gold.  My trading suggestion is to continue to look for small long trades intra day and with a stop loss below the $865 price point.

The short term trend is sideways while the medium and long term trends are bullish.

Support:    $895.30 (yesterday’s low)                                   Resistance: $922.77 (high of 04/03/09)

Support:    $884.05 (low of 04/05/09)                                   Resistance: $918.50 (high of 27/04/09)

Support:    $871.50 (low of 16/04/09)                                   Resistance: $912.50 (yesterday’s high)