Scotiabank Daily Gold Price Analysis for September 4, 2013

ScotiaBank

The Canadian Scotiabank issued its daily gold and silver market watch for September 4. It highlighted the gold market movement and gave a technical commentary for gold and silver.

Speculating the U.S. Fed tapering drove gold to reverse and starts a declining course. The yellow metal opened the trading session $1,401 then reached the day’s high early at $1,402. Gold fell to a low of $1,385 shortly and continued to trade around this level. The precious metal closed the trading session at $1,390.

On the technical side, gold closed at $1,390. The RSI indicator recorded a new high last week at 71.4 to confirm the new price high at $1,433. The indicator remains bullish despite the recent reading at 58. Monday’s low at $1,373 is forming a support for gold price.

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 down by 1.4% for the day, 1.8% for the 5-days and up 6.2% for the month. The 5-Day MA was at $1,399.87 and the 10-Day MA at $1,401.06. The 100-Day MA was at $1,359.83 and the 200-Day MA at 1,494.70. London AM Fix was at $1,403.75 and the PM Fix at $1,390. The Pivot point for gold on Wednesday was at $1,398.07, support was at $1,379.64 and the current resistance at $1,411.25. The 9-day RSI was at 55, and the 14-day RSI was at 58.

Full Report