Spot Gold Price Chart - Daily Gold Prices 5th January 2010

The commodity market continues to reflect a positive attitude in the New Year, with both spot silver and spot gold prices making significant gains in the first few days if 2010, and recovering some of the lost ground of December 2009. With gold and silver prices now correlating once again, the recovery in both has been welcome with Monday’s wide spread up bar providing the building block for a move away from the sideways consolidation of late December in the 1,075 per ounce price level, as gold once again broke above $1100 per ounce, with today’s positive price action adding further to the bullish sentiment as we break above 1,135 in late trading. With the 9 day moving average now breaking above the 14 day average, and with the high of today attempting to breach the 40 day moving average, the technical signs are positive for a strong recovery in the spot gold price, with the only potential ( and significant ) resistance currently waiting in the 1,145 per ounce price point. A break above here would suggest strong momentum in the move, and provided we see some clear water above this level, then we can assume that the recovery is established, and is not simply part of a short squeeze before moving lower once again.

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