Gold was steady yesterday. The day began at 1929. The early trading in the Asian and European sessions was under the resistance of 1930, bounded between 1920-30. Buying orders have started to enter the market until the US session. The price touched day-high at 1941 with the day ending at 1935.
The market was in line with our expectation yesterday, the price being range-bound by 1920-50(1) and trendline (2) dominating the movement. The resistance at 1950 remained strong, where the price has jumped to 1951, triggered by news from Ukraine, early in the Asian session today and quickly pulled back. The US employment figure should lead the movement later today Althought no one can precisely predict the actual figures and the market's reaction, the range 1920-50(1) should be able to provide a basic structure to set up the trading strategy for today. Suppose the price breaks the key resistance of 1950(4), the upside target will be at 1960(5)/or well beyond, after these many times of rejection in the past week. Trendline (2) has now adjusted to (2.1) on the hourly chart. Just like yesterday, if the price breaks the support of (2.1), the current uptrend will be finished, following a period of consolidation or range-bond.
The M-T trend hasn't changed much on the daily chart, it is still maintaining its path within an uptrend In a S-T trading perspective, the price is now trapped by the 1920-50(6) range.
S-T Resistances:
1965
1950
1940
Market price: 1939
S-T Supports:
1930-27
1920
1915
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.
