The Canadian Scotiabank issued its daily gold and silver market watch for August 2. It highlighted the gold market movement and gave a technical commentary for gold and silver.
Gold price tumbled and stops were triggered below the $1,300 mark. Gold trading session opened on Friday at $1,286.25 to sink at the $1,283.5 mark down, and then quickly reverse. The fast reversal was supported by the lower than expected U.S. non-farm payrolls numbers, which implied another setback for the fed’s tapering bond purchases on slower economic recovery. The reversal took place and gold price peaked at $1,318.75 and stayed high to close at $1,311.5.
On the technical side, gold price closed lower for the week, testing the $1,301 support area and breaching it. Breaching this support will open the way for re-testing the major low at $1,180, according to the bank analysts. The outlook is still bearish for gold and $1,156 is the next stop. The RSI study through the 2012-2013 downtrend reached 20.83 reading from 67, which is also bearish.
Gold price moved for the day by 0.1% down, for the past 5 days by 1.9% and moved up for the past month by 4.4%. The 5-Day MA was at $1,319.59 and the 10-Day MA at $1,326.85. The 100-Day MA was at $1,404.02 and the 200-Day MA at 1,535.93. London AM Fix was at $1,285.25 and the PM Fix at $1,309.25.
The current Pivot point for gold is at $1,307.54, support is at $1,284.02 and the current resistance at $1,331.79. The Bollinger band Upper at $1,365.19 and the Bollinger Band Lower $1,228.31, while the Bollinger Band Mid at $1,296.75. The 9-day and the 14-day RSI are at 49.