Market Analysis » investing in gold

Daily Spot Gold Price – January 12th 2009

anna — Mon, 12 Jan 2009 11:34:14 +0000

On Friday daily spot gold prices closed slightly lower in a choppy session with the market making big swings in both directions. Initially the price of gold was modestly higher, but the December non-farm payrolls data showed that job losses nearly matched the consensus forecast which boosted the US dollar and in turn put pressure on gold. Later on despite a stronger US currency, the spot gold price regained a big part of the early losses in a short covering rally, as traders exited positions ahead of the weekend. The short and long term trends are bullish while medium term trend is bearish.

Support: $844.00 (Friday low) Resistance: $885.17 (high of 05/01/09)

Support: $836.10 (low of 08/01/09) Resistance: $870.50 (high of 06/01/09)

Support: $828.70 (low of 23/12/08) Resistance: $868.50 (Friday high)

Gold Market Daily Report

anna — Fri, 12 Dec 2008 09:45:28 +0000

The market has managed to build on gains of the past three days reaching a high $834.80, a level last seen in mid October. The main driver behind this upswing in gold was again the US dollar trading sharply lower, on concern that the approval of a bridge loan for the auto industry will add to the global liquidity already increasing at a disturbing pace. This morning’s, news that talks in the Senate over an auto bailout broke down, sent gold lower suggesting that market direction is yet to be defined in the short term. The short term trend is sideways, medium term trend is bearish while long term trend is bullish. Have a good weekend and more from me on Monday!

Support: $801.60 (yesterday low) Resistance: $834.80 (yesterday high)

Support: $792.55 (14 day moving average) Resistance: $832.35 (high of 25/11/08)

Support: $774.55 (low of 10/12/08) Resistance: $829.62 (high of 24/11/08)

Strong Gains In Gold Prices

anna — Thu, 11 Dec 2008 09:03:05 +0000

As I suggested in yesterday’s gold post, we are starting to see a short term rally in prices, as gold managed to cross and settle above the short term moving averages making strong gains in yesterday’s trading session. The upward move was initially triggered by the increased likelihood of the three giant US automakers getting a bailout, and then later in the day helped by the ‘usual suspects’ of a weaker US dollar, stock market rallies and higher crude oil prices. Traditionally gold is seen as a safe haven so any indication of fear in the markets is likely to have a bullish effect on its price. The short term trend is sideways, medium term trend is bearish while long term trend is bullish.

Support: $791.69 (14 day moving average) Resistance: $832.35 (high of 25/11/08)

Support: $774.55 (yesterday low) Resistance: $829.62 (high of 24/11/08)

Support: $752.65 (low of 08/12/08) Resistance: $814.25 (yesterday high)

Gold Prices Edge Higher – December 10th 2008

anna — Wed, 10 Dec 2008 09:18:30 +0000

As with daily oil prices, we saw an ‘Inside Day’ yesterday for gold in a range between the 9 day and 40 day moving average, with the price of gold finishing slightly higher, after giving back some of Monday’s strong gains in early trading. The majority of the move was dollar related and with the greenback trading sideways so did gold. This morning shows the market heading higher and although it’s too early to favour a strong upward move, the long term concerns about inflation from those global stimulus packages could start to have an impact on the gold market. The short term trend is sideways, medium term trend is bearish while long term trend is bullish.

Support: $761.95 (yesterday low) Resistance: $809.00 (low of 28/11/08)

Support: $752.65 (low of 08/12/08) Resistance: $802.30 (high of 21/11/08)

Support: $740.60 (low of 05/12/08) Resistance: $789.43 (14 day moving average)

Gold Prices Cross 40 Day SMA

anna — Tue, 09 Dec 2008 13:25:20 +0000

The important feature of yesterday’s trading session was gold crossing the 40 day moving average and also the fact that it closed above this indicator, although it found good resistance in the 14 day moving average just above $780 level. The main drivers behind the upward move in the yellow metal were a weaker US dollar and big rallies in the equities markets which in turn were triggered by the announcement of US President-elect Obama pledging one of the largest infrastructure spending packages since the 1950s. The short and medium term trends are sideways while long term trend is bullish.

Support: $762.17 (40 day moving average) Resistance: $809.00 (low of 28/11/08)

Support: $752.65 (yesterday low) Resistance: $802.30 (high of 21/11/08)

Support: $740.60 (low of 05/12/08) Resistance: $786.76 (14 day moving average)