Gold Spot Price Chart - Current Gold Price 8th May 2009

Gold Spot Price Chart - Current Gold Price 8th May 2009

Yesterday’s strong move upwards in spot gold prices in the morning, failed to follow through in the afternoon and evening session as the spot gold market absorbed all the various items of fundamental news and investors took the opportunity to take some profits ahead of the weekend, leaving us with a narrow spread up bar but with a deep upper shadow.  Under normal circumstances this candle would suggest inherent weakness in the market, but given the sideways consolidation of the last few weeks and the minimal “rally” of the last few days I would suggest that its significance is somewhat muted given the current framework against which all markets are now trading.  The close of the day finished above all three moving averages settling $2.98 up at $913.03 per ounce, and with the 9 and the 14 now crossing, the general tone is bullish but all markets, including spot gold, are very unsettled and now await the non farm payroll figures due out later today.  With very little in the way of strong resistance ahead there is no reason to suppose that gold prices will move forward once again in due course, but bear in mind ahead of the weekend, and with nfp imminent, many investors and gold traders will be squaring positions.

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

Support:    $907.95 (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: $925.40 (yesterday’s high)