Carried the selling momentum from last Fri., gold sank further yesterday. The market opened at 1694 back from the weekend. After the price briefly touched 1700 during the opening hours, the bearish run began. It cleared the 1680 support in the US opening session and landed at the day-low near 1665. The day ended at 1668, down by USD 25.
Selling resumed after the US employment figures last Fri. After it cleared the 1700 support, an S-T resistance line(2) formed in the past 24 hours; the downward trend should continue before the price breakout from this trendline(2). The next critical support is near 1650(4) for now.
A bottoming signal has yet to appear in the daily chart, where the 20-day MA become the upside resistance again. Gold should touch a new weekly low today. Within the next 24 hours, let’s see if the price can resuming its position within its previous 1653-88(5) trading zone.
S-T Resistances:
1676
1670
1665
Market price: 1663
S-T Supports:
1660
1655
1650
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.
