Gold continued to pull back yesterday. The price traded in a tight range between 1850-56 early in the Asian and European sessions. The drop began once the price reached the day-high near 1857 at the US session opening. The price touched a day-low at 1840, with the day ending at 1841, down by USD 10.

An S-T downward trendline(1) has formed since the price touched the 2-weeks high of 1874 last week. If the price clears the selling pressure from trendline(1), expect the price to rebound toward 1860 in the short run. Overall, gold is still maintaining its range between 1830-70(2) on the 1-hour chart, waiting for the next break.

The pattern on the daily chart hasn’t changed much, where gold is still mainly trading within +/-15 of 1850 since May 19th. Before the next break, can continue to take advantage of the 1835-65 range. Expect the USD to get strong and lower the gold price before the US Fed. Meeting next week, The 250 days MA(4) remains the key support at the downside.

S-T Resistances:

1865

1860

1850

Market price: 1843

S-T Supports:

1840

1835-37

1830

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