Gold rallied to a weekly low yesterday. The market opened near day high yesterday. Once the price touched 1822 early in the Asian session, it sunk all the way to the day low at 1808. Volatility has increased during the US session, but the price has been able to maintain its path within 1810-20, The day ended near 1813, down by USD 4.

Although S-T selling has been triggered by the price breaking through the 1815(1) support level yesterday in the 1-hour chart, the market has shown strong support between 1808-10(2). As the volatility increases, the S-T trading range is now being widened to 1808-28(3), with the price under pressure by the newly formed resistance line(4). The expectation of the price breaking the resistance of 1835 toward 1870 is still valid, but once again being patient is the key. (Notice silver has been making new 2-months high for 2 consecutive days now)

After the price dove to 1808 yesterday, the development of the pattern(7) on the daily chart has become quite interesting on the daily chart, where it provides a perfect springboard for the gold to jump above 1835. The price will maintain with the range of 1815-31(5) in S-T. If the price breaks the resistance, expect the price to respect the uptrend channel(6) toward 1870.

S-T Resistances:

1830-32

1825

1820

Market price: 1818

S-T Supports:

1815

1810-08

1802-00

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.