Gold tested a new high yesterday. The range was quite tight where the market has opened at 1842 and the price has been trading between 1838-43 throughout the day before the US session. Buying orders has been triggered by the price breaking out from the 1843(1) resistance. Gold has reached a new 2 month high at 1853 before the day’s end, with the market eventually closing at 1847.

Althought the price has gone to as high as 1854, it failed to break 1850 after all. 1850 will continue to be the key resistance level with 1843 becoming the new S-T support, waiting for the price to break out from the 1830-50 zone.

The structure hasn’t changed much in the daily chart where the price is still not able to clear 1850. No matter what happened after the US Fed. meeting, the uptrend channel(4) should be able to provide a reasonable blueprint for entering the market.

S-T Resistances:

1860

1854

1850

Market price: 1847

S-T Supports:

1843-45

1838

1833

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.