Gold eased from the 2-months high yesterday. The market opened near day-high near 1807. Once tradings became active during the Asian and European session, the price had kept dipping lower. The price broke the 1800(1) barrier at the US session opening and touched the day-low near 1781. The day ended near 1792, down by USD 15.

The upward momentum has slowed down after the price escaped the already tightened wedge pattern(2). The price is still trading within the uptrend channel (5) overall. The buying support is still relatively strong near the 1788 level. Before the next major breakout, the range 1788-1813(4) is still valid. Pay attention to the resistance at 1800 and the newly formed downward resistance line(3) on the upside as it rebounds within the day.

As mentioned yesterday, the gold price has been pressured by the 250 days MA on the daily chart. The price has failed to defend the 1800 support for the daily close yesterday, showing a sign of S-T consolidation. Before the breakout, the uptrend channel(6) originated from Sept. 30 is still valid, along with the horizontal range 1720-1835 for the L/T trend.

S-T Resistances:

1796-1800

1794

1788

Market price: 1787

S-T Supports:

1785

1781-80

1775

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.