Gold rallied to a 2-week high yesterday. Back from the weekend, the market opened at 1765; once the price touched the day-low at 1758 during the Asian session, buying began. Gold touched the day-high at 1775 at the opening of the US session, with the day ending at 1771, up by USD 6.

Although gold has reached a new 4-week high at 1780(1) early in the Asian session today, buying seems to have slowed down above 1770 on the 1-hour chart. The uptrend channel(2) is still valid. A consolidation may begin after the price got rejected by 1780. A new round of selling toward 1754(3) will start if the price clears the S-T support at 1770-73.

1780-87(4) is a critical resistance zone on the daiy chart. If the buying momentum fails to carry on today, expect the price to consolidate between 1755-80 in the next 1-2 trading days.

S-T Resistances:

1785-87

1780
1776

Market price: 1774

S-T Supports:

1770

1765
1760

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.