Gold Spot Price - Daily Gold Chart 1st June 2009

Generalised and increasing US dollar weakness continues to drive the spot gold price ever higher as it touched $980.17 per ounce last Friday.  Whilst this inverse correlation always boosts the price of gold other factors such as inflation fears and worries about the US’s fiscal health too are helping to support all commodities as investors look for a safe haven and a better return.   Spot gold gained an impressive $18.88 to settle at $979.00 per ounce and now looks set to challenge the psychologically key $1000 price point.  From a technical perspective Friday’s wide spread up bar simply added further momentum to the bullish move high which has continued in early trading this morning with yet more dollar weakness and a consequent move higher in the price of gold.  With all three moving averages pointing higher it can only be a matter of time before we breach the $1000 price target outlined last week.

Support:    $958.35 (Friday’s low)                                      Resistance: $995.65 (high of 24/02/09)

Support:    $944.00 (low of 28/05/09)                                   Resistance: $987.28 (high of 18/02/09)

Support:    $935.55 (low of 21/05/09)                                   Resistance: $980.17 (Friday’s high)

Short, medium and long term trends are bullish.