Gold had carried the selling momentum from the day before, consolidated further yesterday. The price had kept moving lower after the market opened at 1800 and touched the day-high early in the Asian session. It sunk to the bottom 1788 late in the US session ended the day at 1790.

As mentioned yesterday, gold has entered an S-T consolidating period after it escaped Trendline(1). In the past 48 hours on the 1-hour chart, a new resistance line(2) has been formed, however, selling doesn’t seem to be strong so far as it has been trying to stay below 1792 earlier in the Asian session today. The key in the next 24 hours is whether the price can jump over the resistance line(2). If the price stays above 1792 later on today in the US session, a new uptrend channel(3) will be formed.

From a wider perspective, a rounding bottom(4) is currently developing in the 1-hour chart. The pattern will further progress if the price stays above 1780 in the next 48 hours and the pattern’s target can be set at 1835 once it’s complete.

Carried the selling momentum from last Friday, gold is now once again touching 1790. While the price closed near day-low yesterday, the market is not showing any bottoming out signal on the daily chart, still need to prepare for the price to consolidate a bit further.

S-T Resistances:

1800-03

1797

1792

Market price: 1791

S-T Supports:

1788

1782-90

1777

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.