Gold was rejected by 1950 again yesterday. The market opened at 1932, and the price has started to climb after it visited the day-low at 1918 early in the day during the Asian session. The upward momentum has accelerated as the price crossed the S-T resistance line(1). The gold price peaked at 1950 during the US session, and the price was pulled back to 1937 to end the day.
The movement on the 1-hour chart yesterday was in line with our expectations; at the same time, a wedge pattern(3) has been formed in the past 48 hours. The market is now waiting for the release of the US employment figures. It is hard to predict the actual figures and the market reactions; however, 1920-50(3) can be used as a preliminary reference.
The upward momentum from 1889 has slowed down in the past 24 hours. The overall structure on the daiy chart hasn't changed much, where 1920-42 is still trading range before the next break.
S-T Resistances:
1960-64
1950
1940-41
Market price: 1937
S-T Supports:
1930
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.
