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

Spot gold prices continued to consolidate sideways in the face of a complete lack of fundamental news in tandem with all other markets as gold traders wait for the catalyst which many believe will be forthcoming this week sparking a considerable degree of volatility and a possible sustained change in trading sentiment and risk appetite.   What the trigger will be has yet to be determined, however, the most likely events are the FMOC meeting, US GDP figures and the US Treasury Bond Auctions.  If the Fed decides to buy more US Treasury Securities this in turn could hurt the dollar and by default favour spot gold prices.   In addition, with the growing uncertainty in the equities markets which many now believe have risen on over optimistic sentiment rather than factual, fundamental news, this too could well favour a strong bull move for gold prices in the short term and we may well see a further attempt the $1000 per ounce mark in due course.

The short term trend is sideways, medium and long term bullish.

Support:    $931.90 (Friday’s low)                                      Resistance: $961.87 (high of 11/06/09)

Support:    $919.95 (low of 14/05/09)                                    Resistance: $956.02 (high of 21/05/09)

Support:    $914.93 (low of 18/05/09)                                   Resistance: $939.10 (Friday’s high)