Spot Gold Prices - Current Gold Price 12th May 2009

On a day which lacked any fundamental news of any significance spot gold prices were confined to Friday’s trading range although some price support did come in from falls in both equities and the oil market.  Spot gold prices eventually ended the day $3.05 lower, settling at $913.00 per ounce.  From a technical perspective yesterday’s candle once again closed with a lower shadow similar to Friday’s candle suggesting that the bullish tone remains in place, a view supported by all three moving averages, which whilst converging, are also now moving upwards with the 9 and the 40 day about to cross.  However, for any sustained move higher we do need to see a break and hold above $930 followed by a breakout above the high of mid March at $955 and if and until this happens we may see a further period of sideways consolidation but with a bias to the long side.  My trading suggestion for today is to look for small long positions intra-day using the 15 minute and 30 minute charts to identify buying opportunities.  My suggestion for stop loss positions is to set these below the previous low of this move in the $880 region or marginally above.

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

Support:    $908.20 (yesterday’s low)                                   Resistance: $933.20 (high of 01/04/09)

Support:    $895.30 (low of 06/05/09)                                   Resistance: $929.12 (high of 02/04/09)

Support:    $884.05 (low of 04/05/09)                                   Resistance: $917.70 (yesterday’s high)