Gold rallied from 1940 again yesterday. The day began near the day-high at 1956, and the price was one-way downward during the trading at the Asian & European sessions. It touched a new weekly low at 1936 at the US session opening then the rebound started. The day ended at 1950, down by USD 6.

Although the price touched a new weekly low at 1936, the selling below 1940 was relatively weak. The range of 1940-60(1) is still in effect. If the price can clear the resistance at 1957-60 during the US session today, technically, the price will be able to reach again 1980.

The buying support below 1950 is relatively strong while the price has been closing above 1950 for the 3rd consecutive day. The M-T bottom support has shifted from 1920 to 1950 on the daily chart. Before the gold can touch the 2000 level again, the downward trendline(3) will hold the key for the next breakout move.

S-T Resistances:

1974

1965-68

1957-60

Market price: 1952

S-T Supports:

1950

1941-40

1930

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.