spot gold

Gold Chart 8 Nov 2010

The longer term bullish trend for the spot gold price continued once again on Friday with the precious metal testing a low of $1343.46, only to close higher once again at $1394.75 ending the gold trading session as a narrow spread up candle but with a deep shadow to the lower body.  As such the positive sentiment for spot gold was once again in evidence as indicated by the long lower wick of Friday’s candle which added further bullish intent to Thursday’s surge higher for the metal.  The technical picture remains hugely supportive with all four moving averages pointing sharply higher and with the 9 day in particular continuing to offer excellent support in the short term.  In today’s gold trading session we have seen a minor pullback, largely triggered by a small recovery in the US dollar, with gold trading at $1390.50 at time of writing.  However, with the FED’s monetary policy now due for rollout, we can expect to see further sustained dollar weakness with a consequent gain for commodities as a result, with gold in particular moving towards our short term target of $1450 per ounce and then on to $1650 per ounce in the first half of next year.

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