As highlighted in yesterday's gold trading commentary gold trading prices reacted positively to a weaker US Dollar which helped push spot gold prices up by $8.08 per ounce to end the gold trading session at $957.15 per ounce. From a technical perspective the spot gold price ended the day on wide spread up bar closing marginally above the 9 day moving average, a positive signal for gold trading bulls and more significantly well above the resistance in the $952-$955 price band. With the gold market still suffering from thin trading volumes in gold futures, and traders squaring positions ahead of the weekend, today could be another volatile day for gold traders and hopefully you managed to take some profit from yesterday's trading suggestion. My advice today remains the same, continue to look for small long trades but be aware of the next level of resistance now in place in the $962 - $965 price band. In addition do not forget to look at the Dollar Index and have a great weekend.
The short and long term trends are bullish while the medium term trend is sideways.
Support: $948.10 (yesterday’s low) Resistance: $971.75 (high of 06/08/09)
Support: $939.78 (low of 12/08/09) Resistance: $965.45 (high of 07/08/09)
Support: $931.65 (low of 31/07/09) Resistance: $960.52 (yesterday’s high)
