Gold touched a new one month-low yesterday. The day began at 1819. Like the day before, the price quickly rebounded from the early low of 1808 within the opening hour of the Asian session. It reached the day-high 1832 at the European session, and the selling has resumed. The price slid to the day-low at 1804 with the day ending at 1807, down by USD 11.
Although gold touched a new 1-month low yesterday, the buying support between 1800-10 remains strong. The selling momentum has slowed down in the past 24 hours after the price broke out from the downward trendline(1) at the day’s end yesterday. Expect the price to stay within 1808-40(2) before the US Fed. Meeting announcement. Some rumors are saying that the Fed. may increase the rate by 0.75%; if it turns out to be true, the price will test a new low again today, targeting 1785. Otherwise, if the Fed. hike the rate by 0.5% as the market expected, the current downtrend will end.
A bottoming out has yet to appear where the gold price closed near the day-low yesterday on the daily chart. Unless a reversal signal occurs, there is still a chance that the price will touch a new low within today.
S-T Resistances:
1830
1825
1820
Market price: 1814
S-T Supports:
1810
1808
1800
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