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Spot Gold 17 Dec 2010

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Gold Chart 17 Dec 2010

The short term bearish picture for the spot gold price continued this week as the precious metal ends the year on a muted note following several months of sustained gains as it consolidated in the $1375 to $1425 per ounce region.  Gold trading this week has been characterised by the metal trading below the shorter term moving averages but finding support from the 40 day moving average immediately below and indeed this has been a feature of both yesterday’s and today’s trading.  However, one technical signal that cannot be ignored is the crossing of the 9 day moving average below the 14 day moving average which is giving us a bear cross signal as a result and which may indeed see the price of gold slide further in thin volumes next week as we run up to Christmas.  Despite this short term bearishness on the daily gold chart, the longer term picture remains firmly bullish and indeed Goldman Sach’s forecast for gold aligns with my own, which is that we can expect to see gold prices continue firmly higher next year towards an eventual target of around $1647 per ounce.  In fact Goldman’s forecast is for $1700 per ounce by 2012.

The key levels on the daily spot gold chart are firmly established at $1325, $1350 and the current price level of the 40 day moving average at $1374, all of which may come into play in the next few weeks as we build towards a breakout beyond the all time high of $1430.94 achieved early in December.

Naked gold miners in need of a hedge

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