Home » Spot Gold Price - Daily News » Spot Gold Prices – Daily Gold Chart 9th June 2009

Spot Gold Prices – Daily Gold Chart 9th June 2009

Spot Gold Price Chart - Daily Gold Prices 9th June 2009

Spot gold prices remained on the defensive for a second trading day, which was characterized by a stronger dollar, sharp declines in the equity markets, general risk aversion and a downgrade to Ireland’s credit rating to double AA, with a negative outlook, from double AA plus.  This is the second cut in three months and comes amid worries over the cost of bailing out the Irish banking sector.  The initial fall in the gold chart triggered sell orders whose momentum was also boosted on news of a small reduction of the amount of physical gold held by Exchange Traded Funds.  Overall spot gold did manage to mitigate some losses in late trading and settled $1.47 lower at $953.83 per ounce.

From a technical perspective yesterday has left us with an interesting candle, which closed the day below both the 9 day and 14 day moving averages, but with a deep lower wick and narrow body, very typical of a ‘hammer’ candle. Clearly in this case we are not at the bottom of a steep reversal, however, such candles often indicate that the selling pressure has been absorbed, and that the bulls are once again coming back into the market. It is interesting to note that the low of the day at $945  is at the same level of two weeks ago, where once again spot gold prices found solid support, bouncing off the 9 day moving average before continuing higher. Whilst I would exercise caution, this is a positive sign, and from the early price action for gold prices this morning, this pattern seems to have been repeated once again. My suggestion for today is to wait for the close, and should we see a similar candle formed on the day, then this could confirm yesterday’s candle and indicate that we should see a move higher in due course.

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

Support:    $942.85 (yesterday’s low)                                   Resistance: $982.80 (high of 04/05/09)

Support:    $935.55 (low of 21/05/09)                                   Resistance: $966.24 (9 day moving average)

Support:    $924.75 (low of 20/05/09)                                   Resistance: $959.70 (yesterday’s high)