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.