Gold was choppy yesterday. The day began near 1819. The price had tested the 1820 support in the Asian session and eventually touched the day-low at 1811 at the European session. The rebound started early before the US session, with the price jumping to a day-high near 1833 about 2 hours into the US session. The day ended at 1817, slightly down by USD 2 with a USD 22 range.
The choppy market was mainly triggered by the comments from the Fed’s chairman. Gold has finally escaped the 1820-50(1) range yesterday and is now dominated by the downtrend channel(2)—the S-T resistance currently sitting at 1820. The price should test a new low today, targeting 1810-08(4), unless a new pattern forms.
As mentioned, gold should test a new low within these two days as the price failed to close above 1826 the day before yesterday. Another selling signal(4) occurred on the daily chart yesterday. The target at 1810 or below remains unchanged for now.
S-T Resistances:
1833-35
1830
1820
Market price: 1817
S-T Supports:
1810-08
1800
1795
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