Gold barely touched 1910 yesterday. Carried the buying momentum from the day before, gold has reached its early peak 1900 in the Asian session. After a brief consolidation during the European tradings, the buying resumed at the US session, pushing the price to the day-high 1910. But the buying momentum couldn’t sustain; the price quickly went below 1900 with the day ending at 1876, down slightly by USD 4.

The US Fed Announcement has triggered the buying of gold ; however, the climb was weaker than expected yesterday; the price had already turned south at 1910 and completely missed the key resistance of 1920. Expect the price to maintain within the 1865-1910 in S-T. Notice that the trading range has been narrowing down on the 1-hour chart since last Thursday; a triangle pattern (2) is now in effect before any breakout.

A bearish sign(3) has formed after the pullback yesterday. If the price fails to jump above the 100 days MA today, expect the price to touch again 1850(5) in the next few days or even lower toward the 250 days MA.

S-T Resistances:

1894

1888-90

1880

Market price: 1875

S-T Supports:

1870

1865

1860

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.