Scotiabank Daily Gold Price Analysis for September 6, 2013

ScotiaBank

The Canadian Scotiabank issued its daily gold and silver market watch for September 6. It highlighted the gold market movement and gave a technical commentary for gold and silver.

The awaited U.S. employment numbers didn’t come surprisingly great, which gave gold price a chance to advance a little. The yellow metal opened the trading session $1,371.50, then reached the day’s low as early as it would for a brief time at $1,359.50. The U.S. employment report announcement spiked gold to its day’s peak at $1,393.50 and established the trading level for the rest of the session. The precious metal closed the trading session of the end of the week at $1,386.50.

On the technical side, gold closed higher at $1,387. The “Reversed Hammer” pattern of last weeks that was signaling a change in the trend was not confirmed. Therefore, it’s more likely that gold will remain bullish till the $1,488 level, the 50% retracement level of the downtrend from $1,795 to $1,181. Short term support was seen at $1,363 and $1,348 while resistance forming at $1,416 and $1,433. Gold price has been seen forming lower lows and lower highs in the daily chart. However, as long as gold holds above the $1,348 level, any retracement is a correction of the new bull trend.

Gold moved up by 1.6% on Friday, 0.4% down for the 5-days and up 8.3% for the month. The 5-Day MA was at $1,390.51 and the 10-Day MA at $1,399.28. The 100-Day MA was at $1,359.44 and the 200-Day MA at 1,491.28. London AM Fix was at $1,368.25 and the PM Fix at $1,387. The Pivot point for gold on Friday was at $1,382.91, support was at $1,365.65 and the current resistance at $1,407.21. The 9-day RSI was at 54, and the 14-day RSI was at 56.

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