Spot Gold Price Chart - Gold Prices 13th September 2009

A strong week for spot gold prices, with the gold market flirting at the $1000 per ounce level once again, and of course all gold traders and market analysts are now asking themselves whether we are likely to see a failure at this price level once again. Thursday’s candle on the daily gold chart certainly hinted at some weakness, ending the gold trading session with a bearish shooting star, which was confirmed on Friday, with the spot gold market closing lower and marginally below the $1000 per ounce price once again, but with a deep lower wick to the body of the candle, suggesting that the gold bulls stepped in to buy late in the trading session. Technically gold prices still look strong, with all three moving averages pointing sharply higher, but the previous failed attempts at this level may prove critical should we fail to see any break and hold above this psychological level. Next week may well prove to be a defining one for the gold market, which may react to any change in investor sentiment towards the US dollar, with many market analysts and forex market commentators suggesting that the US dollar is currently oversold and therefore due for a market correction and sharp reversal higher. Should this occur in the short term then this may well trigger a sell off in the commodity markets which could in turn result in a fall in spot gold prices as a result. However, as always, gold may well benefit from it’s status as a precious metal, and therefore any correlation with the broader commodity markets is not a given, should the US dollar rally as expected in the short term.

Support:   984.50        Resistance:  1010.60

Support:   964.70        Resistance:  982.78

Support:   944.80         Resistance:  963.25