Gold Spot Price 5 Oct 2009

Gold Spot Price 5 Oct 2009

Last Friday’s deep hammer candle, which provided us with a strong bullish signal, was duly validated yesterday as the gold price surged back towards the previous top at the $1,018 price point, ending the gold trading session on a wide spread up bar.  The issue for today is, of course, whether this price level breached and, if so, we can expect the current bullish momentum to be maintained as this area becomes the next support level for gold prices to break into new high ground.  With all three moving averages now firmly below, and with the 9 day moving average about to re-cross the 14, the signs are extremely positive for gold bulls, and should the above price level be broken then we will see a strong trending move higher in the short to medium term for the the price of gold.   The gold price will also be boosted should the US dollar continue its dismal performance, which seems highly likely, together with reports that its status as the world’s reserve currency may end sooner rather than later.

The short term outlook for the gold price is bullish, the medium term is bullish and the long term is sideways.

Support: $1005.67    Resistance: $1018.98

Support: $ 985.67     Resistance: $1004.34

Support: $ 965.45    Resistance: $ 983.15