Spot Gold Price - Daily Gold Chart 9th September 2009

Another strong day for spot gold prices yesterday which surged higher once again and broke through the psychological $1000 level which arrived sooner than even I expected.  Technically yesterday’s candle has a degree of weakness signified by the deep upper wick and whilst this is someway short of a “shooting star” it does perhaps suggest that we are currently seeing the bulls taking some profits off the table whilst the market pauses before deciding to push higher once again.  With all three moving averages pointing sharply higher and with the breakout from the recent pennant now firmly established, we should see a continuation of the strong upwards trend over the next few weeks.  What is interesting, however, for spot gold prices is that they the recent rise is disproportionate to the corresponding US dollar weakness which although still bearish has certainly not collapsed as would be suggested by the recent rise in gold prices.  My trading suggestion for today is to look for small long positions buying on any pullback and particularly once we see a breach and hold above the $1000 per ounce.

Support:   984.50        Resistance:  1010.60

Support:   964.70        Resistance:  982.78

Support:   944.80         Resistance:  963.25