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Gold Trend 09/08

Gold rebounded USD 14 yesterday. Back from the weekend, the market opened at 1774, and the price has traded mainly between 1770-80 throughout the Asian & European sessions. As the trading hours approached the US session, the price cleared the resistance at 1780 and jumped to the day-high at 1790. The day ended at 1788.

In the 1-hour chart, gold is still maintaining its path within the uptrend channel(1); however, the buying above 1790 has been weak since the US employment figures last Fri. An S-T resistance line(2) has formed in the past 24 hours; if the price clears the selling resistance from the line, the price should be able to reach 1800. On the other hand, if the price fails to stand above 1790 in the next 24 hours, gold may naturally escape the current uptrend channel, triggering a round of consolidation.

The rally yesterday has led gold to test the resistance of the downtrend channel(3) again, continued to tangle by the 1780-87 resistance zone. Notice that if the price stays above 1780, it will escape the downtrend channel(3), ending the bearish trend.

S-T Resistances:
1800
1795
1790

Market price: 1785

S-T Supports:
1780
1770-73
1765


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. 


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