Spot Gold Price 24 Sep 2009

Spot Gold Price 24 Sep 2009

The spot gold price continued the recent trend of consolidating above the $1000 per ounce level yesterday, ending the gold trading session with a wide spread down bar which reversed some of the gains of Tuesday, and closed the session marginally above the 9 day moving average. However, on a positive note the 9 day average seems to have provided some solid support to any further move lower, so the bullish sentiment remains firmly in place at present , and we will no doubt see a strong move higher in due course. The key now is for the spot gold price to break and hold above the new top in the $1025 per ounce region, and once this has occurred we should see a continuation of the trend higher with all three moving averages providing solid support.

On Wednesday, gold futures found support from the FED statement that interest rates will continue to remain low for an extended period of time. In addition, officials stated in the release that economic conditions are improving, but that the jobs market continues to struggle. These announcements caused gold futures to bounce from negative to positive territory as gold traders expressed concerns that low interest rates could fuel inflation. However, the FED did make a point to say that it does not anticipate any inflationary issues for some time. Some additional support for gold futures came from the US dollar which had remained relatively flat throughout the day, but on the release of the news saw another sell off which provided a boost to the gold futures market late in the trading session. This positive gold sentiment may well follow through into today’s spot gold price market as a result.

The short term outlook for the spot gold price is bullish, the medium term is sideways and the long term is bullish

Support: 1004.35   Resistance: 1018.35

Support:  994.54    Resistance: 1002.56

Support:  985.45    Resistance: 993.67