Home » Spot Gold Price - Daily News » Spot Gold Price – Daily Gold Chart 5th August 2009

Spot Gold Price – Daily Gold Chart 5th August 2009

Spot Gold Price Chart - Daily Gold Prices 5th August 2009

Spot gold prices (much like crude oil prices) shrugged off  their own market fundamentals of weak demand and lack of volume in gold future by ending the day on a wide spread up bar closing well above all three moving averages which are now pointing firmly higher.  This apparent disconnect between the fundamental and technical picture is characteristic of thin trading volumes coupled with random during the summer lull, making trading extremely tricky.  With spot gold prices now having broken above the strong resistance in the $950 – $955 region we should expect a run higher to re-test the $985 per ounce price point once again but it will be no great surprise to see a failure at this level once again. However, with the continued Dollar weakness and a consequent strength in equities this picture is likely to remain in place for some time and only when there is a significant shift in market sentiment, probably coupled with increased trading volumes, will the current scenario change.   Given the recent price action on the gold chart my trading suggestion is to look for small longs with a stop loss well below the support level at $945 or below but keeping in mind that spot gold prices are highly volatile for the reasons outlined above.

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