Gold has been on a rise in 2017 with prices seeing a gain of 5%. The yellow metal price is rising due to a spur in safe haven buying on the back of economic uncertainties mostly caused by worries regarding new U.S president Donald Trump’s policies , U.S Fed’s rate hike outlook of number of hikes in the year and its pace and a weaker dollar.
Technically gold is looking bullish with charts indicating a rise to $1303.95 taking into account the current global scenario.
In the weekly chart –
Last week gold closed flat after making a high of $1214.7 and a low of $1195.8, the metal took support obliging the trend line at $1195 which can now be regarded as a short term support until the price breaches the next resistance level of $1225
Gold prices moving higher seems to have a short term support/buying around $1205 ( A ) zone indicated by the intersection of trend lines.
The next resistance suggested by the intersecting trend lines is at $1225 ( B ), if it manages to close above that then the next price target could be around $1247-$1249 where the metal faces a stiff price hurdle.
On the contrary a close below the level of $1195 rings a bearish bell, the price may fall further retesting the earlier lows of $1182-$1184 where the metal has a big support. A breach of $1182 can be regarded as extremely bearish where all long positions should be closed.