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.