Spot Gold Price - Daily Price Chart February 12th 2009

Spot Gold Price - Daily Price Chart February 12th 2009

Spot gold prices continued their upward trend ( as did spot silver) peaking at $947.42/oz yesterday, the highest level since July 23rd after a technical breakout above key resistance at $930, with a wide spread up bar on the day. This was a follow through on the bullish engulfing signal we received on Tuesday, so I hope you followed my suggestion yesterday. On the fundamental front it seemed that investors were increasingly concerned about the details of the US stimulus package snubbing the proposed plan as ‘unconvincing’ or ‘not enough’ which fuelled the flight to quality more and more. Challenging the $1ooo/oz  spot gold level again is now a distinct possibility in the medium term. For today I would suggest holding your long position for the next few days, and if you are opening new trades today, then the same strategy as for yesterday applies, in other words small longs with a stop loss below the previous low ( probably around the $885 per ounce level).

The short, medium and long term trends are all bullish.

Support:    $910.00 (yesterday’s low)                                    Resistance: $964.60 (high of 18/07/08)

Support:    $909.32 (14 day moving average)                              Resistance: $949.10 (high of 23/07/08)

Support:    $890.40 (low of 10/02/09)                                    Resistance: $947.42 (yesterday’s high)