Spot Gold Price Chart 12 April 2010

A seminal day for the spot gold price on Friday which finally broke above the recent sustained pattern of sideways price movement ending the gold trading session on a relatively wide spread up candle and closing well above the $1150 per ounce price handle.  The significance of this breakout cannot be underestimated given the fact that the consolidation for gold has continued unabated since September 2009.  As we have outlined on many occasions this breakout to the upside was largely as expected given the strong support from the shorter term moving averages and also the failure to breach the 200 day moving average which remained unbroken throughout this period.  With all three moving averages now pointing sharply higher and with the breakout complete, we should now see spot gold prices move higher back towards the $1200 per ounce price point and beyond with the possibility of breaking into new high ground in due course.  The deep price congestion now immediately below should provide an excellent platform for a long and sustained up trend in spot gold.  The up trend is helped further by the start of the traditional gold buying season.

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