Gold Spot Prices Daily Chart - 27th January 2009

Gold Spot Prices Daily Chart - 27th January 2009

Spot gold traders decided to ignore the strong dollar on Friday and yet the dollar weakness yesterday brought in further buying. This indicates that the market is discounting bearish news giving a sign of current sentiment. The fresh highs made for spot gold prices yesterday were in line with technical expectations highlighted in yesterdays comment, and the safe haven status believers are continuing to increase, which is a sign of the current positive sentiment for gold. The charts are looking technically strong backed up by the crossing of the 9 and 14 day moving averages and provided we hold around $900 the next upside chart point is the October high of $936.50. Due to the magnitude of recent moves the nearest short term moving average is a good $40 lower and failure to hold the $887 level could see a rapid drop towards $860.

The short term trend is up, the medium term trend is sideways while the long term trend is bullish.

Support:    $900.00 (psychological level)                                Resistance: $916.20 (high of 18/09/08)

Support:    $886.90 (high of 02/01/09)                                   Resistance: $916.10 (yesterdays high)

Support:    $882.50 (high of 17/12/08)                                   Resistance: $904.90 (this mornings high)