Gold topped 1900 yesterday. Buying began early in the Asian and European session as the price has carried the buying momentum from the day before. The price broke through the key 1880(1) resistance and the move has continued until it reached day-high 1901. The price ended up closing at 1889, up by USD 28.
Once again the major move was triggered by news from Ukraine yesterday. After the price cleared the 1880 resistance, it has achieved the 1900 target. While the price was dipping toward 1887 early in the Asian session, the S-T support line(2) has been breached. The rapid escalation along trendline(2) from the day before will now slow down. Expect the price to trade between 1883-1900(3) in the early session today. The upward trendline(4) is still valid in the 1-hour chart. Major resistance undoubtedly is 1900(5), if the price is able to jump above 1900 later in the US session, the first upside target will be at 1908-10.
Althought no one can precisely predict when the news would be released, the movement yesterday was in line with our expectation where the price has gone all the way to our target 1900 once it cleared the barrier at 1880(6). The price is being rejected by 1900 for the moment, if the price is able to move higher today, the target can be set at 1908.
S-T Resistances:
1908
1900
1895
Market price: 1892
S-T Supports:
1888
1880-83
1876
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