Spot Gold Chart - Daily Candle Chart 19th March 2009

Spot gold prices rose sharply in late trading following the announcement by the FED  of a programme of massive quantitative easing which takes the form of purchasing long term Treasuries.  This promptly sent shock waves through the currency, equity, bond and commodity markets on the news with the daily candle in the spot gold chart finishing the session with a wide spread up bar, but with long shadows top and bottom, having initially fallen in the early trading session to reach an intra day low of $882.90/oz, its weakest level since January 29th.  The statement sent gold prices sharply higher, as the announcement pressured the US currency and generated worries about potential for inflation down the road, two factors supporting the price of gold.  With the closing price of yesterday now well above all three moving averages, yesterdays ‘shot in the arm’ for gold prices, was perhaps the change in momentum that we needed in order to see the long term bullish momentum  return although we may see some short term profit taking this morning.

The short term trend is bearish while the medium and long term trends are bullish.

Support:    $906.55 (low of 12/02/09)                                   Resistance: $948.80 (high of 18/03/09)

Support:    $890.40 (low of 10/02/09)                                   Resistance: $942.10 (high of 09/03/09)

Support:    $882.90 (yesterday’s low)                                   Resistance: $938.50 (high of 13/03/09)