Gold ended high yesterday. Although the market had been sliding after it opened near 1764 early in the Asian session, the buying was strong during the US session. It has touched the day-low near 1746 before the US session, but it reached day-high 1770 with the day ended near 1769.

The price has finally broken out from channel (1) on the 1-hour chart, escaping the downtrend. An S-T support line(2) has been formed after the consolidation yesterday. Although the resistance is now sitting at 1770, the target can still be set at 1780 for the next 48 hours. On the other hand, if the price break the support line(2), aiming the price to slide toward 1750.

The M-T downtrend on the daily chart has been finished by the price breaking out from the resistance line(4). After 3 consecutive days of gains, there is some S-T selling pressure (profit taking) pressing the market for the moment. The market will need to close above 1760 in order to maintain its current path upward. If the market closes below 1760 today, gold may enter a short period of consolidation.

S-T Resistances:

1770

1764

1760

Market price: 1759

S-T Supports:

1755

1750-21

1744-45

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.