Gold cleared the 1680 major support yesterday. The market opened near 1697, and the price had already sunk below 1690(1) early in the Asian session. Before the US session got active, it bounced between 1685-90. Once it cleared the critical support supprot later in the US session, the price went to a new 2-year low near 1660. The day ended at 1664, down by USD 32.

Gold finally escaped the 1690-1730(3) range yesterday, with an initial expectation of a 1:1 movement; the following trading range should be between 1650-90(3). The S-T trend will remain downward unless the price can jump above the S-T resistance line(2) that we mentioned yesterday. The S-T downside target can be set at 1650 for now.

The overall structure shifted from previously sideway to downward for now, as it is the first time in 2 years that the gold price closed below 1695. Expect the price to stay bearish until the US Fed. Meeting next week.

Unless the price can climb above 1700 in the next 2-3 weeks, a double-top pattern(4) in the weekly chart will be formed. The price is currently running in Wave 5(5), expecting the bottom to occur around the US Fed. Meeting.

S-T Resistances:
1680
1670
1665

Market price: 1660

S-T Supports:
1650-52
1645
1640

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. 

Gold cleared the 1700 support yesterday. The day began at 1791. The trading was relatively stable during the Asian and European sessions, within the tight range of 1700-07. The price cleared the 1700(1) support late in the US session, pushing the price to the day-low near 1693. The day ended at 1696, down slightly by USD 4.

The market has been quiet since the rapid drop after the US CPIs the day before. An S-T resistance line(2)has been formed in the 1-hour chart in the past 24 hours; gold needs to clear the 1690 support in the European session today. Otherwise, the price will jump back above the downward trendline(2), triggering a new round of buying. If the price breaks the resistance line(2), the S-T upside target can be set at yesterday’s high of 1707. On the other hand, 1680 remains the critical support.

The structure hasn’t changed much in the daily chart; the price remains in the 1690-1730(4) range. It will be ready to move below 1680 if the price closes below 1695.

S-T Resistances:
1705-07
1700
1697

Market price: 1692

S-T Supports:
1690
1685
1680

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.