Spot Gold Prices - Daily Gold Chart 5th June 2009

The spot gold price resumed its upwards trend, recouping much of the previous day’s losses as investors re-entered the market on speculation that gold is moving back towards the $1000 level and that the commodity market offers a degree of certainty currently absent from other assets.   A sell off in the US dollar in reaction to the the ECB’s decision to maintain interest rates also boosted the price of gold which closed $13.46 higher to settle at $978.10 per ounce.  From a technical perspective yesterday’s wide spread up bar, virtually regained all the losses of Wednesday, and as I suggested in my market commentary yesterday, we must always wait for any signal to be confirmed before trading on the result. In this case the bearish reversal signal seems to have been ignored, and the 9 day moving average has once again provided the support to prevent further falls, both on  Wednesday and Thursday, suggesting that the trend has remained intact, and we should now see a push above the $1000 per ounce in due course. With the bullish signal from the moving averages and the market’s failure to confirm the bearish signal on the daily gold chart, we can now look to build further longer term positions as gold prices move higher once again.

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

Support:    $960.30 (yesterday’s low)                                   Resistance: $1000.00 (psychological level)

Support:    $958.35 (low of 29/05/09)                                   Resistance: $995.65 (high of 24/02/09)

Support:    $944.00 (low of 28/05/09)                                   Resistance: $982.80 (yesterday’s high)