Gold pulled back from the 1-year high yesterday. The market opened at 1909. The price has kept climbing during the Asian and European sessions, all the way to 1974 until the price began to turn south at the US session. The price dropped to day-low 1877 before the day's end at 1903, down by USD 6 and fluctuated over USD 90 yesterday.
The market was driven by news yesterday. Because the movement was too fast too sharp, the movement would only stop at the next major resistance level after the price broke out from its previous resistance(1915/1930/1950/1965), which was the same as it was pulling back at the US session. If the market becomes volatile again today, trade the market "zone by zone", (1870/1880/1900/1915/1930/1950/1965/1975), just like yesterday. However, the price is now back to its previous level, just like nothing had happened. "Buy on rumor and sell on news" once the war has been confined to breakout and the Russian seems to be capable of finishing the war quickly, the market risk premium has slightly reduced, profit-taking actions may be triggered later on. Expect the price to trade within 1880-1930 before the US session. If the price fails to stay above 1908 before the weekend, gold may begin to consolidate next week.
After the movement yesterday, gold has finally crossed the 1900-08(2) resistance zone, moving higher along with the upper limit of the uptrend channel(3). If the price clears the 1900-08(2) resistance zone today, the upside target can be set at 1950 on the daily chart, but still, need to be 100% prepared for an M-T consolidation as the price move toward the bottom of the uptrend channel(3).
S-T Resistances:
1927
1920
1915
Market price: 1912
S-T Supports:
1910
1900-1897
1891
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.
