Home » Spot Gold Price - Daily News » Spot Gold Prices – Gold Chart 23rd April 2009

Spot Gold Prices – Gold Chart 23rd April 2009

Spot Gold Price Chart - Gold Trading Daily Chart 23rd April 2009

Continuing worries in the financial sector and nervousness about the forthcoming results of the bank stress tests combined with a lower dollar all helped the spot gold price to move higher yesterday.  Gold prices were also given a boost by some short covering and inflation buying following the HPI (House Price Index) numbers in the US which came in better than expected at +0.7% against a target of -0.7%, the first consecutive monthly gain in two years, a signal that perhaps low interest rates may finally be moderating falls in house prices. From a technical perspective yesterday’s up bar closed above both the 9 and 14 day moving averages and with the two crossing this now provides us with a mildly bullish signal for today’s gold trading, with an apparent platform forming just below the $870 per ounce region.  However, 2 factors need to be considered carefully before opening any long term bullish positions.  First the gold price needs to cross above the $900 per ounce region and above for any sustained move to be maintained, and secondly, and perhaps more importantly, to break above the current resistance in this region which was established back in mid February.  Finally, we need to see a close above the 40 day moving average, and if all the elements combine then we should see a sustained move higher, possibly back to retest the $950 per ounce price point once again.  My trading suggestion for today is therefore to try to find small long positions intra day using the 15 and 30 minute charts with a tight stop loss and relatively small profit targets.  If the price of gold does move beyond the psychological $900 per ounce level then I would consider adding to these positions and locking in profits using a trailing stop loss.

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

Support:    $881.40 (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: $893.50 (yesterday’s high)