Spot Gold Price Chart - Daily Gold Prices 22nd April 2009

Yesterday was indecisive from a technical perspective, providing little in the way of clues to the future direction of spot gold prices, ending the day with a failed attempt to move marginally higher and closing just on the 9 day moving average which has now converged with the 14 day.  On the day, spot gold closed marginally lower yesterday on profit taking, losing a mere 90 cents as the Dow Jones managed to turn higher.  Currently gold prices are negatively correlated with nervous investors buying gold when stocks are down and liquidating gold positions when sentiment improves, thereby pushing equities higher.  Some traders have pointed out that despite the rebound in the Dow Jones the price of gold has not collapsed and the modest decline could be interpreted as a positive signal for gold prices in the medium term, as investors continue to worry, particularly following the vague statements from Timothy Geithner regarding the toxic assets still lurking in the banking system.

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

Support:    $878.55 (yesterday’s low)                                   Resistance: $909.85 (high of 03/04/09)

Support:    $864.25 (low of 20/04/09)                                   Resistance: $899.45 (high of 15/04/09)

Support:    $851.90 (low of 23/01/09)                                   Resistance: $895.20 (yesterday’s high)