spot gold price

Spot Gold Price Chart 2 July 2010

Spot gold prices moved dramatically lower yesterday ending the day as a wide spread down candle as gold shed almost $44 per ounce, touching $1243.65 at the high with a low of $1196.30, but eventually recovering to close fractionally aboe $1200 per ounce – a rollercoaster ride that was also reflected in the US dollar where the usd index also fell over 2%.  What is particularly unusual, of course, is that both gold and the dollar fell in tandem, breaking their once traditional inverse correlation, ie weak dollar, gold strength.  Indeed this breakdown in correlation is being reflection across all the markets and in forex we are seeing the Swiss Franc strengthen dramatically against the euro, breaking another of the traditional correlations.  These wild variations, trading inconsistencies & thin volumes are all combining to produce very jittery markets making trading extremely difficult.  For spot gold the longer term trend still remains firmly bullish and any further deep moves such as those seen in the past couple of days will be seen as buying opportunities, particularly if followed by a hammer or long legged doji candle.

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Bargain hunters support gold prices