Spot Gold Price Chart - Latest Gold Prices 18th June 2009

The most important aspect of yesterday’s candle on the daily gold chart was the support provided by the 40 day moving average which seems to provide an encouraging signal that the recent reversal in spot gold prices may have found a springboard from which to leverage higher once again.  Whilst these are very early days and we should not become too optimistic, it is nevertheless an encouraging sign, and one that seems to have been replicated in the last 3 days.  Yesterday’s up bar was boosted by a weaker dollar and a recovery in crude oil prices which resulted in spot gold finishing $6.93 higher to close at $940.80 per ounce.  The key to any sustained upward move will be a breach of the strong resistance now in place in the $956 level but should we see this broken, coupled with a move above both the 9 and 14 day moving averages then this should provide us with a modicum of comfort as we look to trade the long side once again.   From a fundamental perspective spot gold may also benefit from any renewed fears in both the equity markets and banking systems which are still in a somewhat nervous and fragile state.

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

Support:    $927.58 (yesterday’s low)                                   Resistance: $961.87 (high of 11/06/09)

Support:    $919.95 (low of 14/05/09)                                    Resistance: $956.02 (high of 21/05/09)

Support:    $914.93 (low of 18/05/09)                                   Resistance: $943.15 (yesterday’s high)