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.