Gold Sep 14th

Gold jumped further to as high as 1745.4 with a strong close at 1737.6 last week. And this week it blasted straight up after the Federal Reserve announced further than anticipated measures to increase its monetary easing policy on Thursday. Gold prices traded higher by 2.20% in the 24 hour period ending, at 1769.40 per ounce with a new round of bond buying.

In the Asian session, Gold is trading at 1772.77, higher from yesterday’s close. Gold is expected to find support at 1737.39, and a fall through could take it to the next support level of 1725-1702. Gold is expected to find its first resistance at 1793, and a rise through could take it to the next resistance level of 1811.

Looking at the scenario, we have broken well above the $1750 level, and breaking out on the upside and will hit $1800 in the very short term where it will be facing a bit of resistance, but I think that eventually it is heading towards $2000 an ounce.

I absolutely do not find any reasons for selling it at this point of time, as massive supports are seen at $1740 -1700 level, and the $1640 level. Because of this, I simply would not suggest in selling gold under any circumstances. In fact, every time it turns around, just look for an opportunity to buy more.

However bias remains on the upside and current rally should now extend to 1793/1805/1811 resistance zone. On the downside, below 1689.3 minor supports will turn bias neutral and bring consolidations. But break of 1647 is needed to indicate near term reversal. Till then be bullish in gold.

Keep an eye on break above of 1793 resistance which is needed to be the first signal of up-trend continuation. Otherwise, the consolidation would extend further.