The overall price movement yesterday was pretty much in line with our expectations, where the price has been trading within the 1891-1910(1) range, and the day ended near day high 1907.
Carried the buying momentum from yesterday, the price has jumped across all the significant S-T resistance(2) early in the Asian session today. Again, the movement was triggered by breaking news from Ukraine. The uptrend channel(4) can still be a rough reference for the current surge. If the price breaks the critical resistance at 1950, the next upside target will be 1965.
Pay close attention to the news from Ukraine, where geo-tension can always push the gold prices higher, reaching new highs. The surge has accelerated after the price broke the upper resistance of the uptrend channel(6). Expect the 1960-65 zone will generate resistance on the daily chart in S-T. If the price can clear all the sell in 1950-65, set the first upside target at 1980 or even higher, but before that, the trading range is still in 1915-50.
S-T Resistances:
1960-65
1950
1944-45
Market price: 1942
S-T Supports:
1940
1937
1930
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.
