Gold cleared the 1700 support yesterday. The day began at 1791. The trading was relatively stable during the Asian and European sessions, within the tight range of 1700-07. The price cleared the 1700(1) support late in the US session, pushing the price to the day-low near 1693. The day ended at 1696, down slightly by USD 4.
The market has been quiet since the rapid drop after the US CPIs the day before. An S-T resistance line(2)has been formed in the 1-hour chart in the past 24 hours; gold needs to clear the 1690 support in the European session today. Otherwise, the price will jump back above the downward trendline(2), triggering a new round of buying. If the price breaks the resistance line(2), the S-T upside target can be set at yesterday’s high of 1707. On the other hand, 1680 remains the critical support.
The structure hasn’t changed much in the daily chart; the price remains in the 1690-1730(4) range. It will be ready to move below 1680 if the price closes below 1695.
S-T Resistances:
1705-07
1700
1697
Market price: 1692
S-T Supports:
1690
1685
1680
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