Gold fell more than USD 30 yesterday. The day started at 1851, and the price touched the day-high 1858 early in the Asian session, then the slide began. Once the price escaped the 1840-65(3) range-bound at the US session, selling orders entered the market. The selling momentum has accelerated further after the price broke out from the previous day-low 1830(2), leading the price to the day-low at 1820. The day ended at 1821, down USD 31.

Carried the selling momentum from closing the day before, the price has dipped to 1809(5) early in the Asian session today, but the rebound was fast. The buying below 1820 so far seems supportive. Before the market enters into the more active US session today, expect the price to be bounded between 1820-30(6) for S-T(short-term). If the price can go below 1820 before the day’s end today, the price should be able to travel toward 1800 in the next 48 hours. On the other hand, the price needs to go above the newly formed trendline(4) in order to end the current selling trend.

The downtrend channel(9) on the daily chart is still in effect, and the selling has resumed after the price cleared the support from the 250 day MA(7). Notice that the price must close below 1820 today for the selling momentum from yesterday’ to carry on; otherwise, the lower wick(8) formed during the early Asian session may turn out to be an S-T rebounding signal.

S-T Resistances:

1840

1835

1830

Market price: 1825

S-T Supports:

1820

1815

1808-10

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.