Gold was once again rejected by 1800 yesterday. The day began at 1794; the price has consolidation toward the day-low near 1794 before the buying picked up again. The price has reached the day-high near 1807 after the US released its inflation figures, however, buying failed to carry on. The day eventually ended at 1791, down slightly by USD 3.
The upward momentum has slowed down in the past 48 hours, and the resistance above 1800 is still relatively strong. Early in the Asian session today, gold left the uptrend channel(1) in the 1-hour chart, officially ending the uptrend that originated on July 21st from 1680. Until the next trend is formed, expect the price to trade in the 1773-1800 range-bound.
Meanwhile, gold has escaped the daily chart’s downtrend channel(5). Entering a period of range-bound or consolidation, the buying around 1780-87 still supports the market. In the next two trading days, it will be the first sign of the price turning downward if the price close below 1780 on the daily chart.
S-T Resistances:
1800
1795
1790
Market price: 1788
S-T Supports:
1780
1770-73
1765
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.