Gold touched again the 1950 major resistance yesterday. Carried the buying momentum from the day before, the price has broken the 1930(1) resistance early in the Asian session. It kept moving until it hit the key 1950 resistance at the US session. The day ended at 1942, up by USD 15.
After the price was rejected by 1950 yesterday, the market entered an S-T consolidation period. The support at 1930 so far seems firm during the early Asian session trading. Expect the price to trade in range-bound between 1930-1950(2). If the price can clear the resistance at 1950 before the weekend, the upside target can be set at 1962 or higher.
Gold has been trading on an uptrend since the Fed in the daily chart. Meeting, however, the price is currently blocked by the 20 days MA(3) and the major resistance of 1950. If the price fails to break the 1950 resistance or close above 1940 today, the current rebound trend will temporarily come to an end; the range 1900-50 will then dominate the S-T trend.
S-T Resistances:
1960
1950
1940-41
Market price: 1932
S-T Supports:
1930
1925
192
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.
