Happy New Year!

Gold pulled back from the 2-months high yesterday. The market opened near 1830. And the price has begun to slide after the price briefly touched the daily high near 1832 early in the Asian session. As the price broke the supporting trendline(1) at the US session opening, a new round of selling has been triggered. The price fell all the way to day-low near 1797, with the market ending near 1801, down by USD 27.

Although the price has fallen over USD 27, the uptrend originated from Dec. 26 has yet to end while the price is still maintaining in its range within the uptrend channel(2). Expect the price to stay within 1800-15(3). If the price breakout from the support of channel(2), the downside target can be set near 1790(4).

The rounding bottom(4) that we mentioned before the holiday, has been completed after the price touched 1831 the day before yesterday. Unless the price can cross the major resistance at 1833-35, expect the price to turn sideways between 1750-1833 for now on the 1-hour chart. .

The selling pressure remains strong between 1825-35(5), and it is a sign of the upward momentum running dry as the price fails to stand above the trendline(6). The 1720-1835 range is still dominating the daily chart after a reversal signal has appeared yesterday.

S-T Resistances:

1820

1812-15

1807

Market price: 1805

S-T Supports:

1800-1797

1792

1785

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.