Gold rallied from the 2-months low yesterday. The market opened near 1771, and the selling accelerated at the US session opening. The price cleared the 1770 support and dipped all the way to a 2-months low near 1752 right after the US Fed. announcement. The gold price rebounded quickly thereafter, the day ended at 1776, up USD 6.

Gold has carried the selling momentum from the day before with the price touched 1752, completing the 1:1 target(1) of the 1770-92 range break. The rapid rebound has led the price back to the 1770-92(2) range before the day-end. If the price keeps the buying momentum from yesterday, it will be able to return to the top of the (2) range, 1792.

At the end of the day, gold has failed to clear the support in the 1760-70 zone(3). The closing price at 1774 has created a reversal signal(4) on the daily chart, this time should be strong enough to contend with the previous selling pressure (4.1). Back to the 1770-95 range, the upside target can be set the 100 days MA (6) again.

S-T Resistances:

1792-94

1788

1784

Market price: 1782

S-T Supports:

1778-80

1774

1768-70

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.