Scotiabank Daily Gold Price Analysis for August 12, 2013

ScotiaBank

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.

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