On the chart –
Gold had a big week with large swings on the upside but couldn’t hang on to the gains it created but managed to keep the bar green with a modest $10 rise compared to rise seen in the week. With the 20 day moving average being respected almost every week the bullishness is getting strengthened and it is expected to head higher. We have 2 scenarios –
1. Gold’s closing above the support suggests more upside may be on the way. If the support is held it can head higher to $1358. If this is crossed it can rise to $1374. And if this is conquered it can register a new 52 week high at $1392.
2. There are no short trades unless $1345 breaks, if it happens still it is limited to $1331.
view – Bulls had a great outing cherishing gains of more than $35 in the week but failed to capitalize on it, still they managed to have a green week and added another $10 on the upside. A close above the support of $1345 can be assumed to add more power to the tone. Fundamentals are currently favoring the bulls which might take the price to $1400 sooner than imagined. Another green week is expected if the supports are held and if geopolitical tensions keep the markets on edge.
There are no views as the support was held.
On larger terms, Gold continues to remain in a strong grip and prices are expected to head higher.
Possible trades are on both sides but largely on long side, gold can be bought above $1354 for the targets of $1358 and $1374 with a stop loss placed below $1345. Longer term target $1392.
There are no short trades unless $1345 breaks, and if it does still its limited to $1331.