Scotiabank Daily Gold Price Analysis for September 3, 2013

ScotiaBank

The Canadian Scotiabank issued its daily gold and silver market watch for September 3. It highlighted the gold market movement and gave a technical commentary for gold and silver.

Gold rallied after the Labor Day weekend on rising possibility of a military aggressive action on Syria drove some investors to buy gold as a safe heaven. The yellow metal opened the trading session $1,395 then dipped early to a low of $1,391.75. Gold advanced for the rest of the session close at the day’s high of $1,413.

On the technical side, gold closed at $1,413 after the past 3 sessions making weak closes. Tuesday’s support was at the previous day’s low of $1,373. The next area of resistance is the convergence from the 38.2% Fibonacci retracement of the long-term uptrend from 2008 to 2011, and the 38.2% retracement of the downtrend from 2011 to 2013. Therefore, the next big area of resistance is from $1,447 and $1,463. The bank is still bullish on gold as long as gold holds above $1,348.

Gold moved up by 1.6% for the day, down for the 5-days by 0.1%, and up 7.7% for the month. The 5-Day MA was at $1,404.94 and the 10-Day MA at $1,398.52. The 100-Day MA was at $1,359.67 and the 200-Day MA at 1,496.34. London AM Fix was at $1,391.25 and the PM Fix at $1,399.50. The Pivot point for gold on Tuesday was at $1,404.69, support was at $1,392.88 and the current resistance at $1,424.78. The 9-day RSI was at 68, and the 14-day RSI was at 66.

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