Home » Spot Gold Price - Daily News » Spot Gold Price – Gold Chart 29th April 2009

Spot Gold Price – Gold Chart 29th April 2009

Spot Gold Prices - Daily Gold Chart 29th April 2009

Reasons for yesterday’s sell off in spot gold prices range from worries about swine flu, technical selling as stops were triggered once the price fell below the $900 per ounce price point, struggling sales in India – gold buying for this year’s Akshaya Tritiya festival seems to have resulted in flows into ETF’s rather than physical gold and finally speculation of an imminent new central bank agreement to increase the amount of gold that can be sold which led at one point to the price of gold falling by almost $20.

From a technical perspective the dark cloud over pattern mentioned in yesterday’s commentary did indeed convert into a wide spread down bar on the day which temporarily pierced both the 9 and 14 day moving averages, but closed the session marginally above both at $890.70 per ounce losing $14.87 on the day.  There are several important points to note for today’s trading which are as follows.  First yesterday’s close was supported by the moving averages. as outlined above, which perhaps suggests that this is a positive sign for the bulls.  Secondly. the low of the day failed to penetrate the support immediately below this region, both for that created in early February and the same level created earlier this month, which once again would suggest a possible re-basing of gold prices before any move higher.  Finally with the lower wick yesterday’s candle aligning strongly with lower wicks both in mid March and throughout February this again could be considered a positive signal for a move higher in due course.  My trading suggestion for today is to look for small long positions intra day in the 15 and 30 minute charts using a stop loss in the $865 per ounce region.

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

Support:    $883.55 (yesterday’s low)                                   Resistance: $922.77 (high of 04/03/09)

Support:    $871.50 (low of 16/04/09)                                   Resistance: $918.50 (high of 27/04/09)

Support:    $864.25 (low of 20/04/09)                                   Resistance: $906.00 (yesterday’s high)