Gold pulled back from the 250 days MA yesterday. The day began at 1824; overall, the price traded between 1822-30 throughout the Asian/European sessions. Until the trading entered the US session, the price spiked to the day-high 1836, then the fall began. It dropped to the day-low at 1812, with the day ending at 1814, down by USD 9.

Gold has finally escaped the downward trendline(1), officially ending the downtrend that originated from 1909. Expect the S-T trend to transform horizontally to an 1800-30 range-bound on the 1-hour chart until the next breakout.

The buying momentum is not strong enough to push the price over the 250 days MA on the daily chart ; gold is still maintaining its path within the downtrend channel (6). On the daiy chart, the closing price cannot close below 1810 so far. Pay close attention…where it will be a sign of the price heading toward a new low if the daily closing price ends below 1810(7) in the next few trading days.

S-T Resistances:

1830

1825

1820

Market price: 1810

S-T Supports:

1805

1800

1795-93

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.