The Canadian Scotiabank issued its daily gold and silver market watch for August 12. It highlighted the gold market movement and gave a technical commentary for gold and silver.
The first inflow in two-months and the increased gold ETF holdings reported on Monday gave investors and traders the heart to invest in the yellow metal. Gold started the day the lowest at $1,328 then run-up to a high of $1,344.5. The precious metal consolidated for the rest of the day then closed at $1,335.
On the technical side, gold rallied strongly closing at $1,335 above the resistance of the daily downtrend at $1,317. This downtrend held as a resistance for 14 straight sessions, which is encouraging as the bank said. The RSI confirmed the move by reaching the 58.31 mark. However, the indicator faced a strong resistance at 61.64, July’s price high at $1,348. These key numbers, the $1,348 per ounce price and the RSI at 61.64, are the next resistance challenge that faces the gold bulls. The key support is August 7 low at $1,273.
Gold moved up by 1.7% for the day, 2.5% for the 5-days and 3.9% for the month. The 5-Day MA was at $1,306.95 and the 10-Day MA at $1,311.12. The 100-Day MA was at $1,385.89 and the 200-Day MA at 1,524.05. London AM Fix was at $1,325.75 and the PM Fix at $1,341. The Pivot point for gold on Monday was at $1,331.53, support was at $1,318.66 and the current resistance at $1,349.09. The 9-day RSI was at 64, and the 14-day RSI was at 58.