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.