Scotiabank Daily Gold Price Analysis for July 31

ScotiaBank

The Canadian Scotia Bank issued its daily gold and silver market watch for July 31. It highlighted the gold market movement and gave a technical commentary for gold and silver.

Gold price tumbled on better than expected U.S. economic data. The U.S. second quarter GDP grew by 1.7%, which is still sluggish but better than the 1.1% of the first quarter. The private payroll numbers also came better than expected. Both numbers imply the economic recovery of the U.S. and boosting investors’ confidence. Gold trading session opened at $1,332.25 to peak at the $1,325 mark briefly, then trade down at a low of $1,307. A small reversal took place and gold price closed at $1,312.5. Gold swayed heavily after the Fed announcement of continuing bond purchasing program in the after hours trading.

On the technical side, gold price closed lower, making a new 7-session low in an attempt to test the $1,301 support area. Breaching this support will open the way for re-testing the major low at $1,180, according to the bank analysts. The daily downtrend provided resistance at $1,336. A test of the $1,301 low is expected.

Gold price moved for the day by 0.1% down, moved for the past 5 days up by 0.2% and moved up for the past month by 7.3%. The 5-Day MA was at $1,329.36 and the 10-Day MA at $1,323.05. The 100-Day MA was at $1,409.66 and the 200-Day MA at 1,539.95. London PM Fix was at $1,314.50.

The current Pivot point for gold is at $1,323.58, support is at $1,307.43 and the current resistance at $1,341.21. The Bollinger band Upper at $1,364.99 and the Bollinger Band Lower $1,222.68, while the Bollinger Band Mid at $1,292.83. The 9-day RSI is at 59, while the 14-day RSI is below at 55.

Full Report