Gold continued its uptrend yesterday. The market opened at 1960, and the price was rejected by 1960 early during the Asian and European sessions, bounded between 1950-60. A renewal round of buying was triggered after the US released its CPI figures, broke out from the triangle pattern(1), and climbed to the day-high at 1978. The day pulled back to 1966 before closing, ending the day at 1966.

The uptrend accelerated again yesterday, from (2.1) to the latest trendline (2.2). The Feb. 24’s peak of 1974 is the next key resistance on the 1-hour chart; if the price fails to cross the 1974 barrier before the US session today, it will neutrally escape the support from the trendline (2.2), ending the current uptrend enter the next stage of consolidation. The upside target will be at 1990 if the price breach the 1974-78 resistance zone; otherwise, the price will trade in range-bound between 1950-74 in the next 48 hours.

An upward trendline(4) has formed since the beginning of the climb on April 08. Gold is trying its best to escape the top of the range, 1965(3), as the day ended at 1966 yesterday. If the price can close above 1965 today, the price should be able to leave the 1895-1965 range, upside target at 2000 or higher.

S-T Resistances:

1990

1978-80

1974

Market price: 1971

S-T Supports:

1960

1960

1951-50

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.