Spot Gold Prices Today - Daily Candle Chart 5th February 2009

Spot Gold Daily Candle Chart - 5th February 2009

Spot gold prices closed higher yesterday despite a stronger US dollar holding above the psychological $900 per ounce. Supported by early strength in the equities markets spot gold managed to attract additional bargain hunters who kept the price higher even as the stock markets retracted. Once again the daily candle bounced off the 9 day moving average, adding weight to the move, a view confirmed by the failure to confirm the bearish engulfing candle of Monday. News about a steep rise in US debt levels and concerns that government spending is getting increasingly difficult to finance are likely to lead investors to increase gold holdings pushing the price higher.

With the $900 an ounce region acting as a secondary support level, we should see spot gold prices edge higher today, and  in the short to medium term, and my suggestion today for intra day trading, would be to attempt small long positions with a stop loss below the $850 region.

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

Support:    $894.75 (Yesterday’s low)                                    Resistance: $927.07 (high of 02/02/09)

Support:    $887.36 (14 day moving average)                              Resistance: $916.10 (high of 26/01/09)

Support:    $881.85 (low of 28/01/09)                                    Resistance: $909.50 (yesterday’s high)