On the chart –
Gold tested the support once again and bounced higher showcasing the strength of the trend and the increasing demand. With global fundamentals looking weak and recession fears looming gold does demand a higher valuation. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move towards $1327. If this is crossed it can rise to $1341. And if this is taken out it can rally to $1356.
2. Short trades remain absent apart from scalping as the support is held and the trend remains .
view – Bulls had a quiet week on the upside but were equally fierce as the price rallied back from the lows. $1300 was defended again with lot of buying interest visible at lower levels. Till the support is held and the fundamentals remain favorable for gold new highs cannot be ruled out.
views remain out of the picture as the trend remains .
On larger terms, Gold continues to remain and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1320 for the targets of $1327 and $1341 with a stop loss placed below $1308. Longer term target $1356.
Short trades remains missing and only come live once the support is broken.