Gold rallied from a renewed 9-month low yesterday. The day began below 1730 at 1725, and the price stayed between 1720-30 before the US session throughout the day. Once the US released its inflation figures, the price dropped to the day-low at 1706 but buying quickly entered the market. The day ended at 1734, with the day-high reaching 1743.
Althought gold touched a new 9-month low, the gradual downward slope on the 1-hour chart that has been trending in the past few trading days came to an end after the rebound yesterday. The buying above 1740 is still relatively weak; we can expect the price to be bounded by 1720-40 until the price can stand above 1740 comfortably to kick start the next uptrend.
The first reversal signal finally appeared after the price touched the bottom of the downtrend channel(4) yesterday. The price defended the 1730-1800(3) range yesterday. For gold to start a decent rebound, it must close above 1740 on the daily chart in the next few trading days.
S-T Resistances:
1755
1750
1740
Market price: 1731
S-T Supports:
1730
1720
1712-15
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