Gold made a positive breakout towards $1212 in the late Asian trading session on account of economic uncertainties and worries over the 2 big speeches lined up later in the day – British PM Theresa May on Brexit and Chinese President Xi Jinping at Davos on the global economic outlook.
The jitters are backed by the inaugural address by President elect Donald Trump who takes office at the end of the week.
The precious metal was in a range bound trade yesterday testing both resistance and support.
Outlook for gold broadly remains bullish due to global economic worries and U.S Fed’s number of rate hikes and its pace in the current year.
Gold’s weekly chart shows a breakout above resistance level of $1208.7, the next resistance on the chart is at $1228 which is a likely target in coming days.
Prices can go further till $1248 where the yellow metal faces a stiff resistance.