Spot Gold Prices - Daily Candle Chart January 30th 2009

Yesterday’s trading has provided us with an excellent buy signal for today, following the bullish engulfing candle of Thursday, and we can now look for a move higher today in the price of spot gold. In addition yesterday’s prices bounced off the 9 day average adding weight to the move. The “safe haven” fuel of this current gold rally was certainly re-established again yesterday, when a large drop due to profit taking was soon reversed once the Dow started experiencing weakness. From a technical viewpoint the spot gold price is still looking strong, with the 9 day average holding above the 14 day moving average and the 14 day above the 40. The 9 day acted as good support after yesterday’s drop and any subsequent profit taking in today’s trading is likely to find this level as good support again. There is likely to be a reasonable amount of position squaring ahead of the weekend and month end which will as always give an indication as to whether traders are happier to hold long or short positions.

The short term trend is up, the medium term trend is sideways while the long term trend is bullish.

Support:    $884.42 (9 day moving average)                        Resistance: $931.50 (high of 10/10/08)

Support:    $873.95 (yesterdays low)                              Resistance: $916.10 (high of 26/01/09)

Support:    $868.50 (high of 09/01/09)                            Resistance: $909.80 (yesterdays high)