Spotgold Chart 29 Jan 2010

Last week’s spotgold chart provided us with little in the way of either excitement or directional clues, trading in a narrow range between the USD1075 and USD1100 per ounce price band.  Friday’s candle was typical ending as a narrow spread doji cross very similar to that of Thursday.  From a technical perspective the only interesting point concerns the low of both Thursday and Friday, and indeed also in this morning’s early spotgold trading session, where the lower wick seems to be finding some support in the USD1075 price region which could provide a platform as gold bulls look to rebuild their long positions.  However, whilst the spotgold price remains all three moving averages any move higher from here is only tentative at this stage and will take some time to gain traction.  In the short term expect further sideways consolidation between the current price level and the upper resistance at USD1150 per ounce and these two levels may now dictate the trending channel for the next few weeks.

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