Gold Chart 29 Sep 2009

Gold Chart 29 Sep 2009

A very similiar day for the spot gold price market as for Friday, with the trading session ending the day with a narrow spread down bar, but one with a deep lower shadow to the bottom of the candle, suggesting once again that the bullish tone evident in the spot gold market remains firmly in place, despite the sharp move lower last week on the daily gold chart.  Indeed, yesterday’s candle has created a tweezer bottom formation with that of Friday, which suggests that we should see gold prices move higher in the short term as a result, a view reinforced by the proximity of the support level in the $991 per ounce region, which seems to be providing a solid platform from which to reverse higher. However, whilst gold prices remain below the 9 day and 14 day moving average, our bullish view has to be tempered with a degree of caution, and only a break and hold above these key technical indicators will confirm that the bullish trends has been re-establisged once again. In the meantime we should see a move higher in the next day or so for spot gold prices, and once the break above the moving averages has been added to the picture, we should see the $1019 price level breached in due course, with a push much higher in the medium term.

The short term outlook for spot gold prices is bullish, the medium term is sideways and the long term is bearish.

Support: $990.32   Resistance: $1000.89

Support: $983.45   Resistance: $989.76

Support: $966.65   Resistance: $982.35