Carried the buying momentum from the day before, gold had continued to climb last Friday. The market opened near 1755 with the price traded between 1750-60 throughout the day. The week ended near 1760, up slightly by USD 5.

The trend has bottomed out since the price broke out from the resistance line(1) on the 1-hour chart. After 2 days of trading, the price has now reached the top of the M-T downtrend channel (2). Selling resistance is currently strong between 1760-64(3). If the price fails to break out from channel (2) in the next 24 hours, the market may need to consolidate back to channel (2) for another 48-72 hours before it can escape the downtrend.

The downward momentum from the beginning of Sept. has slowed down since the price broke the resistance at 1750-53 on the daily chart . Back from the weekend, the price has escaped the downtrend(4) at the market opening earlier today. Still waiting for the price to climb above trendline (5) for the next uptrend to officially kick-off.

S-T Resistances:

1776

1770

1764

Market price: 1760

S-T Supports:

1755

1750

1744-45

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.