On Friday gold continued its move higher having broken through key resistance at 1350 earlier in the week – the weekly chart currently looks very bullish. There are some areas of concern for the bulls however, with strong resistance expected 1380-1400 and 1415-1425. Should price break beyond 1425 we wouldn't be surprised to see it return to 1500 and possibly 1525 in the medium term.
We feel it’s more likely that price will form a channel between 1400 and 1350 over the next few sessions which may last right up until the next Fed meeting in September. The uptrend channel that gold is currently in has around $100 of play in it, meaning that price could easily sit between 1400 and 1350 for the next couple of weeks.
On the news front, the only items we see influencing gold this week are the release of the Fed minutes on Wednesday evening and, possibly, any clues on upcoming policy arising from the Jackson Hole summit…although this year the summit seems to be a summit of deputies with Bernanke, Carney and Draghi giving it a swerve – so we’re wondering whether it will have the same market moving impact as in previous years.
We feel it’s more likely that price will form a channel between 1400 and 1350 over the next few sessions which may last right up until the next Fed meeting in September. The uptrend channel that gold is currently in has around $100 of play in it, meaning that price could easily sit between 1400 and 1350 for the next couple of weeks.
On the news front, the only items we see influencing gold this week are the release of the Fed minutes on Wednesday evening and, possibly, any clues on upcoming policy arising from the Jackson Hole summit…although this year the summit seems to be a summit of deputies with Bernanke, Carney and Draghi giving it a swerve – so we’re wondering whether it will have the same market moving impact as in previous years.