Gold Spot Price Chart - Daily Gold Prices Candle 12th August 2009

Trading in gold yesterday was characterized by a total lack of participation as the markets wait on the FOMC rate decision, subsequent statement and their affect on the US Dollar.  From a technical perspective this lack of involvement was reflected on the gold chart by a small doji candle which oscillated between the 14 day and 40 day moving average.  Indeed the high of the day found some resistance from the 14 day moving average suggesting that the bearish sentiment remains firmly in place ahead of this evening’s announcement.  Indeed this price action has been replicated once again in early trading and until the FED decision we can expect more of the same today.  Once the news has been released and markets have had an opportunity to absorb the content, any breach of the 40 day moving average coupled with a break below the $935 per ounce price level will flag a deeper for gold prices in the short to medium term, and should this occur then the next interim support level awaits at $925.  Only a break and hold above the $965 price level would indicate a resurgence and move higher in spot gold prices.

With the recent price volatility in the gold market, this has presented many trading opportunities on both sides of the market, but to be successful you need a specialist gold broker who not only understands the market, but also offers tight spreads, along with the latest news from around the world affecting the commodities sector. One of the keys to success is to practise first, so if you would like a free trial of one of the best gold trading platforms around, then please just follow the link here, and get started trading in gold.

The short term is bearish, medium is sideways & the long term is bullish.

Support:    $941.45 (yesterday’s low)                                   Resistance: $965.45 (high of 07/08/09)

Support:    $936.37 (low of 20/07/09)                                   Resistance: $956.90 (high of 10/08/09)

Support:    $931.65 (low of 31/07/09)                                   Resistance: $949.77 (yesterday’s high)