Yesterday, spot gold ended up 0.1%, with an intraday range of just $10. While U.S. economic data keeps showing improvement, investors are cautious about rebound in Covid-19 cases.
Meanwhile, Bloomberg data showed that total known gold ETF holdings rose 12 million ounces in the second quarter, the largest increase since the first quarter of 2009. On the other hand, Citigroup raised its 3-month gold price forecast to $1,825, reiterating its bullish bias for 2021.
From a technical point of view, spot gold is trading within a bullish flag pattern as shown on the 1-hour chart. In addition, it stands above its previous trading range of June 25-26. The level at $1,761 might be considered as the nearest intraday support, while the 1st and 2nd resistance are likely to be located at $1,780 and $1,788 respectively. Alternatively, a break below $1,761 may trigger a pull-back to the next support at $1,755.
Technically, SD Gold (1787.HK), a Chinese gold producer, posted a rebound and broke above the corrective channel after holding above the upper boundary of the consolidation zone on a daily chart.
Currently, the stock prices returned the level above the rising 50-day moving average. In addition, the RSI also crossed above the declining trend line drawn from April.
Bullish readers could set the support level at previous low at HK$14.86, while the resistance levels would be located at HK$18.32 (the previous high) and HK$19.80 (the measured move of consolidation zone) respectively.
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