Gold pulled back from the 4-weeks high yesterday. The price broke out from last Friday’s high 1981(1) early in the Asian session and triggered a new round of S-T buying, pushing the price to the day-high of 1998 at the US session opening. But the day ended at 1978, below the resistance of 1980, up slightly by USD 6.

The buying above 1980 is not strong enough to keep the gold price above 1980 for closing yesterday. The uptrend from 1941 is now coming to an end while the price has crossed the support of trendline(2) in the Asian session today. Selling may start to come into the market in S-T, expect the price to touch again 1960 the bottom of the range(3) within the day.

Yesterday’s pull-back has created a reversal signal(4) on the daily chart. Once the price goes below 1970, it will visit again 1960 or lower.

S-T Resistances:

1990

1980

1974-76

Market price: 1975

S-T Supports:

1970

1965

1960

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.