Gold had hit a fresh 8-week high before a reversal took place plummeting the prices towards the key support area and finally closing fairly above it at the end of the week.
Metal was mounting gains in the early part of the week on account of risk-off trades due to policy uncertainties and economic worries broadly of U.S. Suddenly the metal faced headwinds after hitting highs as risk-on trades resumed with global stocks rallying and a weighing-on stronger dollar dampened the demand causing the prices to fall incrementally at the end of the week offsetting the gains forcing the metal to close in red/negative for the week.
Technically gold bounced off the lows of $1179.5 before closing at $1190 obliging the support around $1182-$1184. Low may be considered to be a reversal point as metal retraced almost 50% of gains from the recent highs when it had hit that price.
On weekly chart –
Gold broke 2 price points which may now act as a short term resistance, one at 1192-$1194 zone (A) and other a good one at $1205 (B). Gold held its key support zone of $1182-$1184 which may confirm that it is still in the grip of bulls and it must hold to keep the bullish bets intact, on contrary a failure to hold it may result in further downside sending the price towards its recent lows of $1136 and maybe even lower.
Now gold faces a good resistance at $1205 (B), and any closing above that may lead the prices to new highs towards $1248 mark.
Yellow Metal has been pretty volatile this week, further trades must be executed with strict stop loss and we might see the Buy at Lows and Sell at Highs trade pan out until either of the key support/resistance is taken out decisively.