Gold reached a new 2-month high yesterday. The price was blocked by 1825 early in the Asian and European session. Once the US session had become active, the price broke out from 1825 reaching the highest 1833 right the day’s end. The day ended at 1832, up by USD 7.

Gold finally reached our S-T target at 1833 late in yesterday’s session and it has begun to consolidate thereafter. The uptrend originated from Nov. 04 is now completed as the price has escaped the uptrend channel (1) early in the Asian session today. The S-T trading strategy remains unchanged as yesterday with 1807-33(2) as the trading range until the current trend develops further.

Gold has gotten close to the 1835(3) resistance, the upper limit of the range(4) just like the last few times. So far there is no sign of it breaking out from the M-T/L-T range of 1720-1835(4). It will be the first sign of the price attempting to break the upside if the daily closing price closes above 1825 in the next 2 trading days.

S-T Resistances:

1840

1833

1830

Market price: 1826

S-T Supports:

1825

1820

1815

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.