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.