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Spot Gold Prices – Daily Gold Chart 9th April 2009

Spot Gold Daily Chart - 9th April 2009

Spot Gold Daily Chart - 9th April 2009

The bearish tone in spot gold prices remained firmly in place yesterday closing marginally lower on the day and with a relatively large upper wick indicating a failed attempt to rise during the session, adding to the downward direction.  With all three moving averages now sitting above this is also adding additional pressure to gold prices in the short term, and there is little in the daily chart at present to suggest that we are likely to see a reversal to this trend in the short term.  With strong resistance now in place immediately above and for some way beyond the $900 per ounce mark for any sustained move higher we will need to see this coupled with strong momentum and wide spread up bars with limited wick to the top of each candle.

Today will be a relatively muted day for trading in the gold market as we approach the long holiday weekend in many countries and we are therefore likely to see a relatively small trading range as traders square positions ahead of the 3 day break, resulting in thin trading volumes.  Next week the earning season starts in earnest with the usual raft of reports for US companies and associated analysts’ forecasts.  This has already started with Alcoa waddling onto the stage like some early overfed duck at the beginning of the duck hunting season, and promptly slaughtered by the market on truly awful results which perhaps lays the foundation for the next 2 to 3 weeks.  If this trend continues we could see a flight back to gold as investors once again seek a safe haven.

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

Support:    $877.90 (yesterday’s low)                                   Resistance: $909.85 (high of 03/04/09)

Support:    $871.05 (low of 07/04/09)                                   Resistance: $896.97 (high of 06/04/09)

Support:    $851.90 (low of 23/01/09)                                   Resistance: $890.02 (yesterday’s high)