Spot Gold Prices - Gold Price Chart 6th August 2009

Although most gold analysts expect spot gold prices to hit the $1000 per ounce mark at some point this is certainly not a given, and despite the bullish sentiment in place on the gold chart technically we are now approaching a pivotal point which will dictate whether this target or postponed, once again.  Gold prices took a breather yesterday with the candle closing the session marginally lower but with a deep lower wick suggesting that we could see a push higher in due course, a view also supported by all three moving averages which are now turning sharply higher.  The key to any sustained rally will be the $980 to $985 resistance level directly ahead and should this be breached then we could achieve the elusive $1000 per ounce mark in the short term.  However, what is concerning at present is that relentless and sustained dollar weakness does not seem to be reflected in spot gold prices which would normally translate into strong buying and this is also reflected in the fact that for the first time there has been a drop in the total quantity of gold held by ETFs.   In addition volumes in the gold futures market are also at an all time low, although this pattern was also evident last year when gold futures contracts simply dwindled away during the summer lull, before returning strongly in mid August.