Gold rallied to a 2-week high yesterday. Back from the weekend, the market opened at 1765; once the price touched the day-low at 1758 during the Asian session, buying began. Gold touched the day-high at 1775 at the opening of the US session, with the day ending at 1771, up by USD 6.
Although gold has reached a new 4-week high at 1780(1) early in the Asian session today, buying seems to have slowed down above 1770 on the 1-hour chart. The uptrend channel(2) is still valid. A consolidation may begin after the price got rejected by 1780. A new round of selling toward 1754(3) will start if the price clears the S-T support at 1770-73.
1780-87(4) is a critical resistance zone on the daiy chart. If the buying momentum fails to carry on today, expect the price to consolidate between 1755-80 in the next 1-2 trading days.
S-T Resistances:
1785-87
1780
1776
Market price: 1774
S-T Supports:
1770
1765
1760
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