Gold closed at 1783 near the bottom of the range yesterday. The day opened near 1790 and the price had been climbing until it touched day-high at 1799 at the European session. Once the price was rejected by 1800, the pullback began. The price slid all the way to day-low at 1780, with the day ended near 1784, down by USD 6.

Althought the price has been under selling pressure after the price was rejected by 1815 last Fri, it is in line with our expectation overall as it has been trading within the 1782-96(1) range throughout the day. Notice, the price has broken out from the newly formed downward resistance line(3) early in the Asian session today. The selling momentum that originated from last Friday will slow down for the moment. Expect the price to remain within the range of 1780-96 for today and the resistance at 1800-03(2) is still valid.

The horizontal range has been widened to 1780-1800(5) after the rebound yesterday on the daily chart. It is the first time the gold market closed below 1788(4) since the price fell from 1860, reflecting most of the buying support/orders near 1780 are slowly being absorbed by the market at the moment. The price will stay within 1780-1800(5) for today and the price may escape this range in the next 48 hours.

S-T Resistances:

1800-03

1795

1790

Market price: 1789

S-T Supports:

1786

1782-80

1774

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.