Current Gold Prices - Daily Candle Chart Gold Prices 14th July 2009

Yesterday’s rally in spot gold prices came as result of a mild rebound in equities and a slide in the US Dollar.  With Goldman Sachs expected to show stellar results before today’s bell we may yet see further rises in the price of gold.  However, before the gold bulls become too euphoric yesterday’s candle was far from emphatic ending the session with a narrow body and deep wicks both to top and bottom indicative of both indecision and short covering.  In addition the high of the day found strong resistance from the 9 day moving average and failed to hold above this technical indicator which gives the gold chart a bearish flavour.  Technically the candle looks weak and as well as the analysis above the price of gold failed to breach the resistance in place in the $920-$925 area suggesting that for any rally to have “legs” we will need to see a break and hold above all three moving averages and the $940 price region.  Overall spot gold prices did manage to move up $6.65 to settle at $918.80 per ounce.   Aside from Goldman Sachs and with the earnings season now getting into full swing we can expect a high level of volatility across all markets.

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

Support:    $907.45 (yesterday’s low)                                   Resistance: $932.10 (high of 07/07/09)

Support:    $895.30 (low of 06/05/09)                                   Resistance: $926.40 (14 day moving average)

Support:    $889.45 (low of 23/04/09)                                   Resistance: $923.32 (yesterday’s high)