Gold pulled back from the early climb yesterday. The market opened with a gap of USD 10 higher than last Friday’s closing. After refilling the gap in the opening hours, the price resumed its path upward until it reached the day-high near 1841. However, the buying momentum failed to sustain; the day ended at 1822, near the day low.

The early surge yesterday was driven by the news from the G7 meeting over the weekend where some of the G7s will sanction Russian gold imports. The spike-up was rather short-lived after all, as the Russian gold holds only a tiny portion of global exports. The overall structure on the daily chart has changed much so far since last week, can continue to take advantage of 1820-50(1) until it escapes the ranges.

A sign of gold turning weak appeared yesterday on the daily chart, where the price touched the 20 days MA(3) and pulled back near the day-low for closing. The long upper wick(4) may lead to a drop below 1820 in the next two trading days. The price must close above 1826 on the daily chart today in order to cancel out the selling signal.

S-T Resistances:

1840

1833-35

1830

Market price: 1824

S-T Supports:

1820

1810-08

1805-00

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.