The gold market closed near the 8-month high yesterday. The trading day began at 1897 and the price has quickly jumped to a new recent high of 1908 early in the Asian session. However, the price has a drawback to below 1900 very soon, and it was traded between 1887-97 the majority of the day. Gold has finally cleared all the selling pressure at 1900(1) late in the trading day, with the day ending near 1903, up by USD 5.
Gold has defended the support level of 1900 early in the Asian session today after it escaped the horizontal trading zone(2) yesterday. The support trendline(3) is still valid while gold is still maintaining its upward momentum in the 1-hour chart. News from Ukraine is still dominating the S-T movement of gold price. If the price can break out from the resistance zone of 1908-10, the upside target can be set at near 1930.
A bullish signal(4) has occurred on the daily chart after gold has been able to close near day-high after early rallies for the past 2 days. If the price clears the resistance of 1900-08(5), the next upside target on the daily chart will be near 1950.
S-T Resistances:
1920
1915
1910
Market price: 1908
S-T Supports:
1903-00
1893
1888
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.
