Gold bounded in a tight range yesterday. The trading started at 1741. The price has continued to sink toward the day-low at 1731 throughout the day. The day ended at 1733, traded in a USD 13 range.
Since the rapid drop slowed down last Thursday, the price has settled between 1730-50(1) in the previous 48 hours. If the price clears the support at 1730, the downside target remains at the 1700-10 support zone.
A reversal signal has yet to appear on the daily chart; therefore, the downtrend channel(4) is still dominating the trend. If the price breaches the 1730 support, the daily chart’s downside target will be at 1680.
S-T Resistances:
1755
1750
1740
Market price: 1731
S-T Supports:
1730
1720
1712-15
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.