Spot Gold Price Chart - Daily Gold Prices 26th June 2009

Spot gold prices had a good day yesterday gaining $6.80 to finish at $939.15 per ounce despite a neutral US dollar and more as a result of the somewhat anodyne statement from the FED and comments from a Chinese official suggesting that China would consider buying more gold in the event of further US Dollar weakness.  From a technical perspective yesterday’s up bar added to the bullish tone following the hammer signal of Tuesday closing the day marginally below the 14 day moving average and fractionally above the 40 day moving average which are now crossing.  In addition yesterday’s gold price found support from the 9 day moving average which is beginning to turn higher elements which are all adding to the gently bullish trend which is now forming.  This mood has continued in early trading this morning with a push higher once again with gold prices once again well above all three moving averages suggesting that the reversal from early June may now have petered out.  The key for today, and moving forward, will be the strong resistance which is now in place at the $952 per ounce level and above and should we see this region breached then we could be in a position to see a re-test of the highs of late May in the $980 – $990 price levels once again.  Intra day progress on the gold chart is relatively slow and my trading suggestion for today (bearing in mind the weekend) is to attempt small longs with tight stops, aiming for small profits targets, using the 15 min chart.

The short term trend is mildly bullish, medium term trend is sideways while the long term trend is bullish.

Support:    $929.25 (yesterday’s low)                                   Resistance: $958.20 (high of 12/06/09)

Support:    $912.70 (low of 23/06/09)                                  Resistance: $943.15 (high of 17/06/09)

Support:    $904.65 (low of 08/05/09)                                   Resistance: $940.27 (yesterday’s high)