Scotiabank Daily Gold Price Analysis for August 21, 2013

ScotiaBank

The Canadian Scotia Bank issued its daily gold and silver market watch for August 21. It highlighted the gold market movement and gave a technical commentary for gold and silver.

Gold consolidated after the outstanding performance last week, taking a break as expected. Gold price opened the trading session at $1,366.50 then slid to $1,361 low then recovering to the session’s high at $1,373 ahead of the FOMC minutes. The yellow metal closed the trading session at $1,370.50 and continued to drop in the after-market trading.

On the technical side, gold closed the trading session almost flat near the $1,370 level. Indicators suggest a bullish market as long as it stays above the $1,348 mark, the previous high from July 2013. Gold appears to consolidate in the uptrend channel from $1,273 to $1,384. The next key resistance is $1,416, the 38.2% Fibonacci retracement of 2012-2013 downtrend of the $1,795 to $1,182.

Gold moved down by 0.3% for the day, and up by 2.3% for the 5-days and 5.5% for the month. The 5-Day MA was at $1,369.43 and the 10-Day MA at $1,347.11. The 100-Day MA was at $1,369.62 and the 200-Day MA at 1,511.20. London AM Fix was at $1,360 and the PM Fix at $1,363. The Pivot point for gold on Wednesday was at $1,368.72, support was at $1,358.16 and the current resistance at $1,377.41. The 9-day RSI was at 65, and the 14-day RSI was at 61.

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