Gold edged to a 2-month peak yesterday. Back from the weekend, the market came back to open near 1815 and the price has been rejected by 1820 thought-out the Asian and European session. Until the US session, gold reached the 2-month peak at 1827. The day ended near 1824, up by USD 6.

The trading range was relatively tight yesterday, merely @ USD 14. The S-T trend is still running within a narrow uptrend channel (1). Unless the price is able to push higher in the near term, this current steep and tight uptrend channel (1) will be hard to sustain. As mentioned yesterday, expect the channel to be widened. 1807-1833(2) should be the preliminary range for today with 1825 being the S-T resistance.

The overall trend is still dominated by the 1720-1835(3) range on the daily chart . Buying momentum has slowed down while the price is approaching the top of the range. Notice, the resistance above 1825 has been strong so far, as the price has failed to stay above 1825(4) for over 48 hours since July. The break out from the downward trendline(5) yesterday is yet to be confirmed since the momentum and volume didn’t seem to be significant enough.

S-T Resistances:

1833

1830

1825

Market price: 1822

S-T Supports:

1820

1815

1807-09

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.