Scotiabank Daily Gold Price Analysis for August 22, 2013

ScotiaBank

The Canadian Scotia Bank issued its daily gold and silver market watch for August 22. It highlighted the gold market movement and gave a technical commentary for gold and silver.

Gold consolidated again, taking a break from the recent bullish price movement as expected. Gold price opened the trading session flat at $1,370.50 then slid to $1,366.50 low early before recovering to the session’s high at $1,382 on high U.S. jobless claims. The yellow metal closed the trading session at $1,371.50 and continued to drop in the after-market trading.

On the technical side, gold closed the trading session near the $1,372 level. During the past two weeks, gold price were seen consolidating from $1,273 to $1,384. 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 up by 0.7% for the day, 0.7% for the 5-days and 3% for the month. The 5-Day MA was at $1,371.38 and the 10-Day MA at $1,353.37. The 100-Day MA was at $1,367.84 and the 200-Day MA at 1,509.50. London AM Fix was at $1,370.50 and the PM Fix at $1,375.50. The Pivot point for gold on Thursday was at $1,371.13, support was at $1,360.22 and the current resistance at $1,386.97. The 9-day RSI was at 68, and the 14-day RSI was at 63.

Full Report