Gold stabled around the 1990 level yesterday. Carried the selling momentum from the day before, the market opened at 1991, and the price quickly touched the day low at 1970 early in the Asian session. The price rebounded to the day-high 2009 before entering the US session. The price was range-bound between 1970-2010 throughout the day, with the market closed at 1996, up slightly by USD 5.
The gold price has found its S-T support around the 1970 level. Profit-taking has slowed down in the past 24 hours, but those new long open positions have yet to enter the market. Expect the price to trade between 1970-2010(1) before the weekend. Buying will resume once the price can stay above 2000 for more than 24 hours after the market gets used to the current price level. In the next 48-72 hours, the price will still have a chance to consolidate further toward 1950 before it can springboard beyond 2000.
Since Gold pulled back from the record high the day before, Gold has not closed below 1990 so far on the daily chart. Before the trend develops further, expect the price to be range-bound between 1970-2065. It will signify Gold to fall further if the price closes below 1990(2).
S-T Resistances:
2020
2000-03
1990
Market price: 1988
S-T Supports:
1980
1974-70
1960
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.
