Gold pulled back from the 1-week high yesterday. The price has kept on escalating during the Asian & European session after the market opened at 1764. The price once touched the high at 1785, but selling began thereafter. The day ended at 1769, up slightly by USD 4.

The price overall was in line with yesterday’s expectation. Although the price has crossed the 1780 barrier after the US housing figures, it was quickly pulled back by those selling and profit-taking orders. A new S-T downward resistance line(2)has been formed in the past 24 hours, with the still in effect support line(1.1) from the uptrend channel (1), mind the triangular pattern(3) in the next 12 hours. A breakout of the pattern will trigger some rapid movement. Nonetheless, 1780 is still the major resistance on the 1-hour chart.

The pulled back yesterday has once again created a strong selling signal(4). 1780(6) is the key upper resistance on the daily chart . If the price is not able to get past 1780 in the next 2 trading days, the gold price will naturally escape the current uptrend channel (5), then can prepare some consolidation to come in the following days.

S-T Resistances:

1788

1780

1776

Market price: 1774

S-T Supports:

1768-70

1760

1755

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.