Gold closed at 1783 near the bottom of the range yesterday. The day opened near 1790 and the price had been climbing until it touched day-high at 1799 at the European session. Once the price was rejected by 1800, the pullback began. The price slid all the way to day-low at 1780, with the day ended near 1784, down by USD 6.
Althought the price has been under selling pressure after the price was rejected by 1815 last Fri, it is in line with our expectation overall as it has been trading within the 1782-96(1) range throughout the day. Notice, the price has broken out from the newly formed downward resistance line(3) early in the Asian session today. The selling momentum that originated from last Friday will slow down for the moment. Expect the price to remain within the range of 1780-96 for today and the resistance at 1800-03(2) is still valid.
The horizontal range has been widened to 1780-1800(5) after the rebound yesterday on the daily chart. It is the first time the gold market closed below 1788(4) since the price fell from 1860, reflecting most of the buying support/orders near 1780 are slowly being absorbed by the market at the moment. The price will stay within 1780-1800(5) for today and the price may escape this range in the next 48 hours.
S-T Resistances:
1800-03
1795
1790
Market price: 1789
S-T Supports:
1786
1782-80
1774
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Althought the price has been under selling pressure after the price was rejected by 1815 last Fri, it is in line with our expectation overall as it has been trading within the 1782-96(1) range throughout the day. Notice, the price has broken out from the newly formed downward resistance line(3) early in the Asian session today. The selling momentum that originated from last Friday will slow down for the moment. Expect the price to remain within the range of 1780-96 for today and the resistance at 1800-03(2) is still valid.
The horizontal range has been widened to 1780-1800(5) after the rebound yesterday on the daily chart. It is the first time the gold market closed below 1788(4) since the price fell from 1860, reflecting most of the buying support/orders near 1780 are slowly being absorbed by the market at the moment. The price will stay within 1780-1800(5) for today and the price may escape this range in the next 48 hours.
S-T Resistances:
1800-03
1795
1790
Market price: 1789
S-T Supports:
1786
1782-80
1774
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Gold finally broke the key 1780 support yesterday. The market opened near 1785 at the Asian session. The early buying has begun once the price broke the resistance line(1). It reached the day-high 1808 at the US session, briefly crossed the resistance at 1800-03(2) in the 1-hour chart. The momentum has shifted once the Fed. Chair Testimony began. The price has slid thereafter. The day-low landed at 1768 with the day ending at 1774.
The S-T trend in the 1-hour chart has now been shifted from a horizontal range-bound to a downward trend. But one thing that needs to notice in yesterday's breakout is that the selling triggered by the break of 1780 seems relatively weak. TAs a result, the follow-through selling in the next 48 hours may not be too steep and strong. Instead of a sharp decline, expect the price to step down in a range by range pattern. And the range is now shifted from 1780-810 to 1770-1803(4), with a newly formed S-T trendline(3) pressuring it down.
Combining with the previous breakout of the trendline(5), the pattern on the daily chart has now shifted to a downtrend after gold breached the support at 1780(6) yesterday. 1760-70 should be the next support level to catch the current fall.
S-T Resistances:
1800-03
1795
1790
Market price: 1789
S-T Supports:
1786
1782-80
1774
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