Spot Gold - Daily Candle Chart 13th February 2009

Spot Gold - Daily Candle Chart 13th February 2009

Despite talks of deflation for the rest of economy, spot gold moved up again yesterday as market participants increasingly looked for a safe haven amid a bleak economic outlook, and  as I suggested in yesterday’s post, so I hope you followed the advice. However, I do have to issue a word of warning today, as we now have a shooting star candle from yesterday, which could signal a fall in prices today, with a possible down day. If you are trading intra day then this may be a day to step aside, and wait for any signal from today. I suspect that with the weekend ahead and following the strong move up in the last few days, then we may see some profit taking today, along with traders squaring positions for the weekend.

Support yesterday came from further weakness in the stock markets although the move wasn’t as significant as in the previous two sessions. As I mentioned in yesterday’s report a rise towards the all time high of $1018/oz set in March 2008 is now looking increasingly achievable for spot gold prices in the next few weeks.

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

Support:    $934.20 (yesterday’s low)                                    Resistance: $1000.00 (psychological level)

Support:    $917.07 (9 day moving average)                               Resistance: $964.60 (high of 18/07/08)

Support:    $912.18 (14 day moving average)                              Resistance: $953.00 (yesterday’s high)