Gold ends weeks of bearish calls, closing week up. Gold registered a weekly gain of 1.6%, hitting the high at 1,126 on Thursday, as the China’s yuan devaluation had investors pushing into safe-haven assets such as gold. Ending at 1,115 on Friday, the yellow metal recorded solid gains for the week, registering three days of gains out of the past five sessions. Despite that, the bears has yet to fade from the forefront, as observation on the weekly chart, continues to bores a bearish trending channel. That said, traders are advised to watch if there are any further price-supportive developments out of China next week, or if instead the Federal Open Market Committee might says anything to rain on the yellow metal’s parade.
Gold turned slightly lower on Friday, as positive U.S. data and some profit taking from the futures market, had the precious metal waning its strength towards the week’s end. Settling Friday at 1,115, the precious complex traded between the range of 1,112 to 1,121, as modest buying interest in gold, puts the yellow metal on a gradual pace down temporarily. Technical patterns on the daily chart continues to show slight negative trading, noticing that any attempt near the 23.60% Fibonacci Retracement mark would have price falling thereafter. It is therefore instructive to observe the global economic forefront in the week to come, in order for the precious metal condition to continue on its suggested bullish rise.
Moving near the 23.60% Fibonacci Retracement mark and the 200 EMA lines on the H4 chart, Gold price is trading in a sideways motion, stabilizing between 1,112 to 1,121. In fact, with price now holding above the 1,110 level, it is with clear positive expectation that bullish momentum is indeed building on for the precious metal. Still, we are waiting for price to test the 1,125 resistance level, which the breaching of that should have Gold moving higher. Expected trading range for today is between 1,113 support and 1,119 resistance.