Gold rallied from the 2-week low yesterday. Carried the selling momentum from the day before, the price was under pressure by the S-T resistance line(1) throughout the day, and the fall has accelerated once it broke the 1915(2) support at the European session. The rebound began after the price had touched the 2-week low, 1989, at the US session opening. The day ended at 1918, down slightly by USD 4.

While the Russia-Ukraine peace talk is in progress, the gold price has weakened in the past 48 hours. The price touched 1889 yesterday, but the buying around 1900 is still strong, where the price can only stay below 1900 for no more than 2 hours. The downtrend originated on Monday ended yesterday as the price has broken out from the S-T resistance line(3). Gold is now resuming its position above 1920; gold is now back to the range of 1915-40(3). Expect the bullish momentum to continue today, potentially touching the upper resistance of the range near the 1940 level. On the other hand, pay close attention to the Russia-Ukraine peace talk, which may trigger sudden selling.

Gold successfully defended its closing price around the 1920(5) level yesterday, and the rally before the day’s end has created a bottoming out signal(4) in the daily chart, similar to the one(4.1) that occurred on the Fed. Meeting day. Technically, the price should be able to reach the top of the range near 1940-42 in S-T again.

S-T Resistances:

1950

1940-41

1930

Market price: 1924

S-T Supports:

1920

1915

1910-08

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