Home » Spot Gold Price - Daily News » Spot Gold Price – Daily Chart 7th April 2009

Spot Gold Price – Daily Chart 7th April 2009

Spot Gold Prices - Daily Chart 7th April 2009

Spot gold prices fell further again yesterday as suggested in yesterday’s market commentary, closing the day with a wide spread down bar, but more importantly penetrating the next level of support at $885.40, having touched an intra day low of $864.80. Indeed one of my trading recommendations from yesterday was on the fixed odds trading site, where I suggested a one touch trade for gold prices to reach $850 per ounce in the next 9 days – this now seems very likely. With all three moving averages now pointing lower, and with the price of gold having breached the support level outlined above, the tone for the market is very bearish at present, and until we see a reversal pattern in the daily gold chart, then it seems that the downward trend is firmly established.

From a fundamental view,  talk of potential IMF gold sales certainly didn’t help, and with a strengthening US dollar and fading inflation concerns, this also prompted investors to book profits in gold. It seems that many participants feel more optimistic about an economic recovery after the G20 meeting, so in the short term gold will probably struggle to regain upside momentum given the renewed risk appetite. My suggestion for today is as for yesterday, and attempt small short positions on an intra day basis, using the hourly charts for your entry and exit points, and with any stop losses placed above the $937 region or higher.

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

Support:    $864.80 (yesterday’s low)                                   Resistance: $913.30 (high of 11/03/09)

Support:    $851.90 (low of 23/01/09)                                   Resistance: $909.85 (high of 03/04/09)

Support:    $843.25 (low of 22/01/09)                                   Resistance: $896.97 (yesterday’s high)