Gold consolidated further yesterday. The market opened at 1781. Once it had touched the day-high at 1783 early in the Asian session, the price started to sink. The price had traded between 1770-80 during the European session and crossed the 1770 previous low at the US session. The day-low yesterday touched 1761, with the day ending at 1767, down USD 14.

The market is basically in line with our expectations as it’s stepping lower range by range. Today’s range is now lower to 1755-88, from yesterday’s 1770-1803, with the S-T trend dominated by the downtrend channel(2).

The price has continued to consolidate after the rebound the day before. Although the price broke the previous low of 1770, the drop has failed to accelerate, barely touching 1760. While the market waiting for the US employment figures to be released later on today, beware the price will need to stay below 1780 in order to maintain the current downtrend. An S-T rebound will be triggered if the price closes above 1780 today. .

S-T Resistances:

1792-94

1788

1778-80

Market price: 1775

S-T Supports:

1774

1768-70

1760

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