Gold pulled back from another weekly high last Friday. The market opened near 1798 levels. Once the price broke out from the key 1800 resistance(1) early in the Asian session, it had not stopped climbing until it peaked at 1814 at the US session opening. After the price touched 1814, profit-taking and selling soon began. The week ended at 1797, pretty much unchanged from the previous day.

The total surge of USD 62 originated last Wednesday, from 1752 to 1814, has come to an end(2) after the pullback occurred during the US session before Friday’s end. The selling has basically absorbed all the buying momentum from earlier that day, showing the selling pressure remained strong above 1800. In S-T, expect the price to trade between 1797-1815 within the day, and be cautious of the price breaking the support at 1792(3).

The trading range on the daily chart has been widened to 1770-1815(6.1) by the gold escaping its previous range of 1770-92(6). And the pullback last Friday has created a reversal selling signal(5.1) to encounter the buying signal(5). The closing price on the daily chart will need to stay between 1797-1815 today in order for the upward momentum to stay. Otherwise, if the closing price ends below 1797 today, the market should respect the selling signal(5.1) and possibly resume its position back below 1792.

S-T Resistances:

1820

1812-15

1807

Market price: 1802

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.