Gold tested the resistance again yesterday. The day began near 1813. At the European session, the buying momentum from the day before has resumed, breaking out from 1815(1) resistance, the price has gone all the way to 1829 at the US session. The price has pulled back thereafter, it went to day-low 1808, with the day ended USD 4 lower.

The price has tried to reach the top of the uptrend channel(2) after it broke the 1815(1) resistance yesterday, however, selling pressure remains relatively strong near 1830. The S-T uptrend originated from 1798 on Tuesday, has now been ended by the price falling below trendline(3). Getting close to the bottom of the channel(2) now, if the price is able to carry the selling momentum from the past 24 hours, expect the price to touch again 1790. 1815(4) remains the S-T upside resistance.

As mentioned yesterday, the drop(5) on Monday is still dominating the trend on the daily chart. After the price has touched the resistance line(6), the pullback yesterday created the second selling signal. The selling momentum will accelerate if the daily price closes below 1800(7).

S-T Resistances:

1820

1812-15

1807

Market price: 1805

S-T Supports:

1800-1797

1792

1785

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.