Spot Gold Prices Today - Daily Chart 23rd January 2009

Spot gold prices moved slightly higher yesterday posting an inside day for the second straight session, in which both the high and low were within the previous day’s range and again the 14 day moving average providing good support. As many investors remain concerned about the economic conditions and worried about the financial sector, and in particular the value of paper money such as the US dollar, gold is likely to see renewed safe haven buying. With recent news about the state of banking system, British pound weakness and a weaker equities markets, an increasing number of market participants feel that the worst is yet to come and bad news for the economy is usually good news for gold. With many analysts now forecasting one of the deepest depressions since the 1930’s, gold is likely to see increasing demand from those looking for secure investments in these difficult times. In early trading this morning the price of spot gold had moved to $873 per ounce, as US dollar weakness continues in the currency markets.

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

Support:    $843.25 (yesterday’s low)                                        Resistance: $866.40 (high of 20/01/09)

Support:    $841.13 (14 day moving average)                                   Resistance: $864.40 (high of 22/01/09)

Support:    $838.32 (9 day moving average)                                    Resistance: $863.00 (yesterday’s high)