Gold hit a 5-month high yesterday. Back from the weekend, the market opened slightly higher at 1866 and the price had traded between 1855-65 throughout the Asian and European sessions. It touched 1870, the 5 months high, at the US session, but the buying momentum failed to follow through. The day ended at 1862, down slightly by USD 1 from the day before.

The previous uptrend channel(1) can still be used as a reference. In the past few days of trading, while the daily closing price was being pushed higher, the market has begun to get used to the resistance at 1865-68(2). The wedge pattern(3) is still good for now, with 1843 as the support and the upper resistance stepping higher day by day. Resistance at 1870 remains strong, need to be prepared for any sudden downward movement.

The daily closing price has been pushing higher in the past few trading days, and the long-awaited S/T consolidation has yet to appear on the daily chart. The price has touched 1870 yesterday but failed to stay above 1868. Overall, the price is still on its way toward 1910 in M/L-T, and structurally, the price is bounded by the 1848-68(4) range in the S/T unit it breaks.

S-T Resistances:

1880

1875

1868

Market price: 1865

S-T Supports:

1860

1855

1850

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.