Gold rallied from the new 2-month low yesterday. The market opened at 1809. The price has started to sink after reaching the early day-high near 1817 in the Asian session. The new 2-month low near 1786 was touched before the European session, and once the European market became active, the price rebounded. The market has gone to as high as 1826 during the US trading, with the day ending near 1823, up by USD 12.

As mentioned yesterday, the much steeper bearish trend(1) would be hard to sustain if no additional selling was available in the past 12 hours. Once the selling momentum slowed down yesterday, the piece climbed back to above the resistance line(1), triggering a new round of buying on the 1-hour chart. The resistance line(2) is still ineffective, expect the price to maintain within the triangle pattern(3) for now. If the price breakout from the trendline(2), S-T range-bound trading between 1800-30 will be next.

A reversal signal(5) has finally appeared on the daily chart. If the price can escape the downtrend channel (6), the next target will be the 100 days MA(7).

S-T Resistances:

1840

1835

1830

Market price: 1823

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.