Yesterday the U.S. government and U.S. Treasury markets were closed for the Columbus Day holiday. There were also no major U.S. economic reports due for release. That made for a bit quieter market place.
No headline news on today’s economic calendar so it may be a very quiet trading day.
GOLD rose yesterday to daily resistance at 1,237.96 where sellers finally came in and we saw a retracement from the high of the day but managed to close in the green and above the 10-day moving average. The stochastic is reaching the overbought condition. Will GOLD have enough strength to break the daily resistance zone?
Expecting a downward move to 1,204.70 on a break below previous day low at 1,223.17 (scenario 1) or a failed pullback to 1,237.96 could push GOLD to 1204.70 (scenario 2). A break above the 1,244.96 resistance zone can throw the precious metal to the next daily resistance at 1,268.42 (scenario 3).