Gold rebounded USD 16 yesterday. The day began near 1853, and the price has been range-bound between 1851-57 early in the Asian and European sessions. Ocen the US released the economic figures, the buying has resumed where the price cleared the 1861(1) resistance and went all the way to day-high 1872, the day ended at 1869.
Under the shadow of the US Fed. minutes yesterday, the rebound was stronger than expected. An S-T upward trend line(2) has been formed in the past 36 hours, if the price can break out from this support line, gold will enter a range-bound structure of 1843-80. After all, still need to be aware in case the price clears the resistance of 1880, the upside target will be at 1900 or higher.
Although gold is once again approaching 1880 and the resistance zone(3), as mentioned yesterday, the climb originated from 1780 has been completed on the daily chart after Tuesday's drop. Unless the price can close above 1870 in the next few days, otherwise the market will enter a mode of range-bound(4) just like last time. Since the market movement has been heavily determined by breaking news lately, be aware a new round of climbing may begin if the price jump above the key resistance of 1880.
S-T Resistances:
1890
1880
1875
Market price: 1872
S-T Supports:
1870-68
1865
1860
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.
