Scotiabank Daily Gold Price Analysis for August 27, 2013

ScotiaBank

The Canadian Scotiabank issued its daily gold and silver market watch for August 27. It highlighted the gold market movement and gave a technical commentary for gold and silver.

Gold was traded higher overnight. Gold price opened the trading session at $1,418 then slid to the session’s low at $1,416.25 early before recovering to the session’s high at $1,424 by mid-morning on equities negatively responding to the political tension in Syria. The yellow metal continued to trade around its high and closed the trading session at $1,420.50.

On the technical side, gold rallied for the 4th consecutive day to reach the $1,420 level. Gold successfully achieved the initial 38.2% Fibonacci correction target of $1,416 from the down-move of $1,795 to $1,181. Indicators and the price action suggest that gold topside risk remains. The bank is now bullish on gold and May high of $1,422 was their first attempt for Tuesday. Elliot wave target is now at $1,440 and support is forming higher at $1,384.

Gold moved up by 0.9% for the day, 3.4% for the 5-days and 6.3% for the month. The 5-Day MA was at $1,392.63 and the 10-Day MA at $1,377.96. The 100-Day MA was at $1,362.64 and the 200-Day MA at 1,504.74. London AM Fix was at $1,411 and the PM Fix at $1,419.25. The Pivot point for gold on Tuesday was at $1,412.54, support was at $1,401.14 and the current resistance at $1,429.08. The 9-day RSI was at 78, and the 14-day RSI was at 71.

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