Gold jumped yesterday. The price had opened near day-low at 1769 and steadily went up during the Asian and European session. Once the price broke out from the triangular pattern(2), it has gone all the way to day-high 1788 at the US session opening. The day ended at 1781, up by USD 12.

Gold has successfully defended its position within the uptrend channel(1). The momentum seems to have accelerated after it passed the 1780 barrier. The next resistance is now waiting at 1788(3). If the price can get past it, the next upside target will be near 1800 on the 1-hour chart.

The price is able to break out from the 1780 resistance and maintain its path within the uptrend channel(4) on the daily chart. The upside target can be set at 1796 on the daily chart. But hesitation and selling pressure still exist above 1780, need to be cautious to those sudden drops caused by news and events.

S-T Resistances:

1800

1784-96

1788

Market price: 1785

S-T Supports:

1780

1775

1770

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.