Gold started near $ 1700 levels last Monday and as we anticipated it fell back to its first support at $ 1689 and maintained above that level for quite sometime later it broke the support at $ 1689 and fell to $ 1676 levels , where it had a weekly support near $ 1672. As the week progressed gold recouped from its low, it surged higher quickly and paused at $ 1727 on Wednesday which was its first resistance. After trading to a high near $ 1740 levels on Thursday gold came back to test its support at $ 1700 and reversed to finally settle an active trading week at $ 1724 levels.
This week, 16th and 17th core CPI and FOMC statement will be released respectively of U.S and gold could find some fundamental clues about macro economic data. Later today in Canada Housing stats and on Wednesday CPI numbers of Canadian market will be released. As the week progress , Thursday we will see Official bank rate and policy statement will be released from Britain. U.S dollar index volatility is offering a similar price movement for against commodities and currency across the globe. Gold is currently trading near to where it closed last week at $ 1725.
Technically, Short term charts indicates, that gold has immediate support near $ 1712 and resistance at last week high of $ 1740. A broader pictures on weekly chart shows that fall in price could find decent support at $ 1697 /$1700 levels. Meanwhile first resistance for gold could be seen at $ 1740, and break of that resistance could pull gold to its next resistance at $ 1760. A slide in gold price could be seen as an opportunity to buy with respective stops below to its support levels.
Data and Events for U.S this week
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* Chart Source Netdania
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