The gold market was relatively quiet yesterday due to the US holiday. The market opened at 1810, and a USD 10 range-bound the price throughout the day.
Before the US session last Friday, gold tested the support near 1783(1). Notice that day, once the market entered a more active US session, buying has started to pour into the market. Buying support was strong where the day ended almost USD 25 higher at 1810. Support between 1800-05(2) has been strong in the past 24 hours; the price should be able to touch 1820 or the downward resistance line(3) in the next 24-48 hours.
The rally last Friday has formed a reversal signal(4) on the daily chart. The support zone between 1800-05(5) is valid, where we can expect the price to move toward the downward trendline(6) within the week.
S-T Resistances:
1830
1820
1814
Market price: 1811
S-T Supports:
1810-08
1800
1795
Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.