Chart For Spot Gold Prices Today - January 22nd 2009

Gold spot prices closed marginally lower yesterday posting an inside day on the daily chart with the 14 day moving average providing a good support level. As the equities markets came down so did the spot price of gold despite its safe haven qualities. It is possible that the big rally a day before has seen some traders taking profits off the table but usually an inside day pattern could signal a continuation of the last few days momentum which in this case was upwards.

UBS has announced today that gold will be at $900 per ounce in one month’s time, while its three month projection has been increased to $850 per ounce, which they had originally called at $800 per ounce. The reason behind this revision is due to a surge in the volume of gold investments due to the uncertain financial climate. There is strong demand at the moment from investors for both bullion coins and small investment bars. If you do intend to buy, always buy on a good dip in prices, not on a strong up day.

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

Support:    $843.00 (yesterday’s low)                                        Resistance: $878.47 (high of 18/12/08)

Support:    $834.29 (9 day moving average)                                   Resistance: $872.90 (high of 26/12/08)

Support:    $823.27 (low of 20/01/09)                                        Resistance: $864.40 (yesterday’s high)