Spot Gold Prices - Daily Gold Chart 22nd May 2009

Yesterday’s wide spread up bar saw spot gold prices surge through our initial target of $950 per ounce which I outlined in yesterday’s market commentary for gold prices, settling at $952.55 having gained an impressive $15.44 on the day, but more importantly breaking through the minor resistance created at this price point in mid March.  With all three moving averages now pointing higher and with little in the way of resistance on the daily gold chart ahead the next target for spot gold is the $980 price region last achieved in July 2008 and this may open the way to an assault once again at the four figure price region of $1000 per ounce.  Momentum was given to commodities in general, and both gold and silver, by a dramatic weakening in the US dollar which is now driving investors back into the safe haven status of gold as a result.  My trading suggestion for today, given that many markets are closed on Monday, is to close out your current profitable positions and bank your profits as traders square their accounts ahead of the long weekend, and then look to re-enter on the long side early next week buying on any dips and with an initial price target of $978.

The short term is sideways and the medium and long term are bullish.

Support:    $935.55 (yesterday’s low)                                   Resistance: $967.00 (high of 20/03/09)

Support:    $924.75 (low of 20/05/09)                                   Resistance: $962.50 (high of 19/03/09)

Support:    $917.30 (low of 19/05/09)                                   Resistance: $956.02 (yesterday’s high)