Spot Gold Price Chart - Gold Prices 12th October 2009

Following the surge in gold prices earlier last week Friday’s price action in the spot gold price was relatively muted, ending the gold trading session with a narrow spread doji candle which surprisingly failed to confirm the strong bearish signal of Thursday, namely a very strong shooting star candle.  Technically the shooting star still hold sway and it is far too early to suggest that this can be discounted and indeed I would expect gold prices to fall back even further in the short term.  Moreover, with the US markets closed tomorrow for the Columbus Day Holiday we may see some volatile and random price moves across all markets including spot gold as a result.  However, I fully expect to see a pullback later in the week although possibly not as far as a retest of the support in the $1018 per ounce level.

The short term outlook for the gold price is bullish, the medium term is bullish and the long term is sideways.

Support: $1005.67    Resistance: $1018.98

Support: $ 985.67     Resistance: $1004.34

Support: $ 965.45    Resistance: $ 983.15