Gold renewed the 3-weeks high yesterday. Carried the buying momentum from the day before, a new round of buying was triggered after the price cleared the resistance at 1700 early in the Asian session. The bullish trend continued until it touched the day-high near 1729 late in the US session. The day ended at 1725, up by USD 25.
After all the interventions and the news from the BOJ & the BOE, gold is trading above the critical support of 1680(1) again. The S-T trendline(2) can be used as a resistance reference for the current bullish trend. While the market is now shifting its focus to the US employment figures this Friday unless the price can clear the resistance at 1730, expect the price to remain in 1700-30 in the next 48 hours.
Since gold escaped the downtrend channel (4) and broke out from the 20 days MA, a bullish trend has begun on the daily chart. Unless the price can clear the 50-day MA and trigger a new round of buying, 1700-30 should be the range for today.
S-T Resistances:
1730
1725
1720
Market price: 1718
S-T Supports:
1710
1705
1700
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