Gold Trend 03/08

Gold eased off from the new high yesterday. Affected by Chins-U.S. tension in the past 24 hours, the price was bounded by the 1770-80 range early in the Asian session yesterday. Gold touched a new high at 1788 at the U.S. session and pulled back before the day's end. The market eventually closed at the day-low 1760, down by USD 11.

As mentioned yesterday, the buying above 1780(1) has been weak. Althought the uptrend channel(2) is still dominating the trend on the 1-hour chart, gold is due to an S-T consolidation for the moment. As the price cleared the 1770-73 support, it reached our target of 1755 early in the Asian session today. 1770-73 becomes a critical resistance now; expect the price to trade between 1750-72 in the next 24-48 hours.


Gold was rejected by the 1780-87(4) resistance zone; the pullback before the day's end yesterday has created a reversal signal(5) on the daily chart. The previous horizontal range(6) is still valid; the downside support can be set at the 10 days MA.

S-T Resistances:
1785-87
1780
1770-73

Market price: 1767

S-T Supports:
1765
1760
1755

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