Gold remained in a tight range yesterday. The day began at 1852. The price first touched the day-high near 1863 early in the Asian session, then the consolidation started. The day finished at 1854, bounded in a USD 16 range.
The price has entered a relatively tight range between 1840-70(2) since it left the uptrend channel(1). We can continue to take advantage of the 1840-70 range until the next break.
Although the price has been wandering around the 1850(3) level since last week, a reversal signal has yet to appear, and the uptrend that originated from 1786 is still in effect. The target toward the 100 days MA remains unchanged. It will be the first sign of the price turning downward if it closes below 1850 on the daily chart.
S-T Resistances:
1870-72
1865
1860
Market price: 1853
S-T Supports:
1850
1845
1837-35
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.