Home » Spot Gold Price - Daily News » Spot Gold Prices Rise – 13th March 2009

Spot Gold Prices Rise – 13th March 2009

Spot Gold Prices - Daily Candle Chart 13th March 2009

Yesterday’s price action in spot gold, saw prices rise for a second day, with a wide spread up candle which closed the session above both the 9 day and 14 day moving averages, but failed to penetrate the 40 day average. With a support level now firmly established at $895 as suggested on Wednesday, we can now start to think that perhaps the short term bearish reversal is over. However, it is still too early to say, as from a technical point of view there is nothing in the candle chart at present to suggest that this is indeed the case. The candle of Wednesday is not bullish engulfing, and the only positive point is simply that the low of the day was identical to the low of the previous day, suggesting a support line. Until we see spot gold prices move above the 40 day moving average once again, and clear the resistance level at $940 above, then it is too early to say that the bullish momentum is back in play. The signs look good, but personally I would wait for today, and see if we can clear the above targets. In addition please bear in mind that many traders will be squaring positions ahead of the weekend, and on thinner trading volumes the markets can be volatile. We will also take a look at the weekly gold chart on Monday to see if that gives us any trading clues.

From a fundamental news perspective the main driver pushing up the price of gold yesterday was an announcement from the Swiss National Bank planning to weaken the franc, seen as a traditional safe haven currency. The bank cut interest rates and signalled that it would buy foreign currencies raising concerns that other central banks may soon be forced to take steps in the same direction. Some analysts also noticed a jump in gold exchange traded funds, along with bullion, and a drop in scrap gold sales as additional bullish news, with the USD/CHF currency pair soaring on the news.

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

Support:    $906.55 (yesterday’s low)                                   Resistance: $944.95 (high of 06/03/09)

Support:    $890.40 (low of 10/02/09)                                   Resistance: $942.10 (high of 09/03/09)

Support:    $873.95 (low of 29/01/09)                                   Resistance: $930.67 (yesterday’s high)