Gold Spot Prices - Daily Gold Chart 8th July 2009

With any discussion concerning the reserve of the US Dollar now off the agenda at this week’s G8, as China’s Hu Jintao has had to return home to deal with the civil unrest in Xinjiang, the Dollar managed to gain a little traction, limiting the fall in spot gold prices to $2.95 and settling at $922.95.  From a technical perspective yesterday’s candle was indicative of a choppy trading session ending the day as a down bar but with a deep upper shadow.  The most significant aspect of yesterday’s bar was the high of the day which as for Monday found strong resistance from both the 9 and 14 day moving averages, and with the 9 day now once again re-crossing the 14 this is adding to the bearish picture.  As gold prices fall once again in early trading this morning, the key to any reversal higher will be whether technically the price of gold is able to find support initially around the $910 per ounce area, followed by that at $900 per ounce but if both these fail we could see a much deeper move to re-test spot gold prices at the $865 per ounce. It is interesting to note that the speed of decline in gold prices is relatively slow when compared with spot silver, which is often the case in a bearish market.

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

Support:    $920.95 (yesterday’s low)                                   Resistance: $958.20 (high of 12/06/09)

Support:    $917.85 (low of 22/06/09)                                    Resistance: $941.10 (high of 02/07/09)

Support:    $912.70 (low of 23/06/09)                                   Resistance: $932.10 (yesterday’s high)