Gold was rejected by 1850 last Friday. A relatively tight range bounded the trading between 1832-49 throughout the day, and the market ended slightly up near 1845 with a USD 3 gain.

Carried the buying momentum from last Friday, the price broke out from the 1850(1) resistance early in the Asian session today. The uptrend channel(2) is still good on the 1-hour chart; expect the price to touch the next resistance near 1865 once the market clears the selling near the early peak at 1858-60(3).

Since the reversal signal occurred last week, the rebound has officially begun. If the price clears the resistnaces at the 20 days MA(5), the next target will be near the 100 days MA(6) to the upside.

S-T Resistances:

1870-72

1865

1860

Market price: 1856

S-T Supports:

1850

1845

1837-35

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.