Spot Gold Price Chart - Latest Gold Prices 10th July 2009

Yesterday’s modest rebound in the price of spot gold was not entirely unexpected given the extent of Wednesday’s sell off.  However, despite some support from a weaker US dollar it was the continuing fall in crude oil prices which appeared to hamper any serious rally in the price of gold.   Overall spot gold gained $5.95 to settle at $913.60 per ounce on the gold chart.  From a technical perspective yesterday’s candle closed the session with a deep upper wick relative to the body of the candle, suggesting that yesterday’s rally was somewhat muted and that the gold bears are still firmly in control.  With the 9 day average now crossing below the 14 day and with all three now turning lower the bearish picture is reinforced by these technical indicators.  Today is not a day for trading in gold, partly due to the conclusion of the G8 meeting in Italy, and partly due to the weekend ahead with traders squaring positions and with relatively little news on the economic calendar, as everyone is off to enjoy their summer holidays.  The key support level for the current downwards trend is just below the $900 price handle, and should this capitulate then a deeper move may ensue, possibly as far as a retest of the $865 per ounce price level, last seen back on the 20th April 2009.   Next week I propose to consider both the weekly and monthly charts in order to look at the longer term view for spot gold prices.   In the meantime have a great weekend.

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

Support:    $905.60 (yesterday’s low)                                   Resistance: $932.10 (high of 07/07/09)

Support:    $895.30 (low of 06/05/09)                                   Resistance: $925.65 (high of 08/07/09)

Support:    $889.45 (low of 23/04/09)                                   Resistance: $918.70 (yesterday’s high)