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.