Gold eased after Russia-Ukraine ceasefire talks. The week began with the market opened gapping USD 30 higher at 1918 back from the weekend. The price has quickly jumped to 1931 but stayed above 1920 for only a short while. The gap(1) was refilled before the European session as the price touched 1893. Overall the price was range-bound between 1893-1920 yesterday, and the day ended at 1908.
As mentioned yesterday, the downtrend that originated from 1974 has been completed, and the price is still contained within 1883-1920(2). An S-T support line(3) has formed after the price rebounded before the closing yesterday. Expect the price to slide along this support line(3) toward 1920 until it breaks out from the range.
Gold has failed to clear the 1900-08 resistance zone(4); the daily was again below 1910. The structure on the daily chart hasn't changed much, and the M-T uptrend channel remains effective. Still waiting for the daily candle to close below 1890 to kick start the M-T consolidation trend toward 1850 or below. But before that, continue to take advantage of the 1880-1910(6) range.
S-T Resistances:
1920
1915
1910
Market price: 1906
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.
