Gold pulled back from the early climb yesterday. The market opened with a gap of USD 10 higher than last Friday's closing. After refilling the gap in the opening hours, the price resumed its path upward until it reached the day-high near 1841. However, the buying momentum failed to sustain; the day ended at 1822, near the day low.
The early surge yesterday was driven by the news from the G7 meeting over the weekend where some of the G7s will sanction Russian gold imports. The spike-up was rather short-lived after all, as the Russian gold holds only a tiny portion of global exports. The overall structure on the daily chart has changed much so far since last week, can continue to take advantage of 1820-50(1) until it escapes the ranges.
A sign of gold turning weak appeared yesterday on the daily chart, where the price touched the 20 days MA(3) and pulled back near the day-low for closing. The long upper wick(4) may lead to a drop below 1820 in the next two trading days. The price must close above 1826 on the daily chart today in order to cancel out the selling signal.
S-T Resistances:
1840
1833-35
1830
Market price: 1824
S-T Supports:
1820
1810-08
1805-00
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P. To
The early surge yesterday was driven by the news from the G7 meeting over the weekend where some of the G7s will sanction Russian gold imports. The spike-up was rather short-lived after all, as the Russian gold holds only a tiny portion of global exports. The overall structure on the daily chart has changed much so far since last week, can continue to take advantage of 1820-50(1) until it escapes the ranges.
A sign of gold turning weak appeared yesterday on the daily chart, where the price touched the 20 days MA(3) and pulled back near the day-low for closing. The long upper wick(4) may lead to a drop below 1820 in the next two trading days. The price must close above 1826 on the daily chart today in order to cancel out the selling signal.
S-T Resistances:
1840
1833-35
1830
Market price: 1824
S-T Supports:
1820
1810-08
1805-00
If you like our work, kindly give our team a thumbs up. Feel free to leave a comment; let us know what you think!
P. To
P. To @ 1uptick Analytic
Gold was choppy yesterday. The day began near 1819. The price had tested the 1820 support in the Asian session and eventually touched the day-low at 1811 at the European session. The rebound started early before the US session, with the price jumping to a day-high near 1833 about 2 hours into the US session. The day ended at 1817, slightly down by USD 2 with a USD 22 range.
The choppy market was mainly triggered by the comments from the Fed's chairman. Gold has finally escaped the 1820-50(1) range yesterday and is now dominated by the downtrend channel(2)—the S-T resistance currently sitting at 1820. The price should test a new low today, targeting 1810-08(4), unless a new pattern forms.
As mentioned, gold should test a new low within these two days as the price failed to close above 1826 the day before yesterday. Another selling signal(4) occurred on the daily chart yesterday. The target at 1810 or below remains unchanged for now.
S-T Resistances:
1833-35
1830
1820
Market price: 1817
S-T Supports:
1810-08
1805-00
1795
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