Gold Trend 13/07

Gold hit a new 9-month low yesterday. The day began at 1733; the price briefly touched the day-low at 1722 and the day-high at 1744 early in the Asian session. Throughout the trading day, the price has bounded by 1725-35, with the day ending at 1725.


The price has tangled around the critical support of 1730 in the past 72; the trading atmosphere is like when the price tested the support at 1820(1) a while back without a clear breakthrough. The price finally passed the 1730 barrier yesterday; technically, we can expect the price to sink further in the next 48 hours. But, one thing bore in mind: the US will release its CPI figures today. Previously on the day(June 10th), as the US released worse than expected CPI figures, gold climbed more than USD 20 with a daily fluctuation of more than USD 50. 1710-00 remains the downside target for now, where prepare for a rapid price change at the time of the release of the figures.


The overall pattern hasn’t changed much on the daily chart; the downtrend channel(4) is still dominating the structure on the daily chart, be patient for a reversal signal. After the price clears the support at 1730, technically, we can expect a new low in the next two days.



S-T Resistances:

1750
1740

1730

Market price: 1726

S-T Supports:

1720

1712-15

1708


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. 


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