Gold inched higher yesterday. The price had traded between 1777-1784 throughout the Asian/European session. At the opening of the US session, the price springboarded to day-low at 1771 then started to jump high. The price reached the day-high at 1787, with the day ending at 1783 up by USD 5.

The downtrend (1) originated from Nov. 26 is now ended by the price that broke out from the downtrend channel(1) yesterday. An uptrend channel(2) has newly been formed in the past 24 hours. But one thing worth noticing is that the upward momentum is eventually slowing down, from the previous trendline(2.1) to the current trendline (2). 1792(3) is the key resistance for S-T. 1780-1800(4) should be the trading range for the next 48 trading hours.

The reversal signal(5) is still valid. As the price cleared the selling resistance at 1787, gold is now entering a pattern of horizontal 1770-1795(6) range-bound on the daily chart. The daily closing price above 1795 will be the first sign of the pattern turning upward.

S-T Resistances:

1800

1795

1792-93

Market price: 1790

S-T Supports:

1787

1780-82

1777

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.