Gold’s weekly outlook: Feb 20-24

Gold has gained now for 3 consecutive weeks with last week’s bar being a fairly bullish indicator for the prices ahead. Many factors around the globe are supporting the safe haven demand but comments and data from U.S keeps the prices in check . This is resulting in a choppy trade with a positive bias, where as a breakout cannot be ruled out either which looks more likely towards the upside taking into account the current fundamentals.

On weekly the charts-
Gold is trading higher into the shaded region which has a high at $1262. This point on the chart seems to be a hurdle but a good resistance which the metal might face is at $1267-$1268 (C) confirmed by the intersecting bullish-bearish ray lines. This also shows the upside potential of the metal. Gold is currently in a bullish grip and prices are expected to rise further, though a reversal cannot be ruled out either. The metal has a support at $1220 (B) confirmed by the intersecting ray lines, any conclusive break might result in more downside towards $1198-$1200 (A) which is a major support for the gold price.

On larger terms a choppy trade with a positive bias is seen ahead with the upside looking intact with short/medium term targets of $1248 and $1268, and $1289 as a longer term target. Though, any conclusive breach of $1220 might be an early reversal signal which will be confirmed if the price breaks below $1200.



Gold’s weekly outlook: Feb 13-17

Gold prices shows bullish trend gaining 2nd week in a row over escalating worries between U.S and Iran. The prices rose swiftly until Friday which saw an intra-day sell-off from 3 month highs but narrowed down to a flat closing for the week which is seen as an extremely positive consolidation move.

On weekly charts-

Gold has moved into a range of $1229-$1303 as the weekly bar closed above the bullish ray line which indicates more upside potential for the metal. The chart has a good hurdle at $1248 from where the metal last week saw the intra-day sell-off, which if taken out opens up a upside towards $1260-$1262 where again the metal might find resistance confirmed by a bearish ray line. On the higher side of the range the next major resistance should kick in at $1289 (A) which might be difficult for the metal to take out without retracement and consolidation.
On the contrary the metal has a support at $1220 which if conclusively taken out might push the prices towards the next support at $1206-$1208.

On larger terms, the metal looks fairly bullish with targets of $1248 and $1262 in short/medium term and $1289 as a long term target in coming days/weeks.


Gold trend remains bullish

Gold is trading at 3 month highs driven by global worries and risks which seems to keep on mounting.

On the chart-
Gold is piling up gains daily making higher highs and higher lows suggesting the price movement is favoring the bulls. The metal is trading in the shaded region which has a low of $1229 (A) acting as a short term support. The intersecting ray-line at $1262 (B) seems to be a bigger resistance than $1248 which is a long term barrier on the chart. The high of the shaded region at $1289 (C) also confirmed by the intersecting ray-line seems as a potential target in coming days/weeks.
On flip side a conclusive breach of $1229 maybe regarded as a break in upward momentum which might send the prices lower towards $1220, in that fails price may test the support of $1208 on the downside.

Overall gold seems bullish with targets of $1248 then $1262 in short term followed by $1289 then $1303 as a long term target.


Gold gains as rally extends further

Gold prices gained in Asian session posting another new high extending the rally which saw good momentum after crossing $1220 amid fresh worries over worsening U.S and Iran relationship regarding a missile test spooking the investors to turn towards safe haven boosting the demand for the yellow metal.
Gold yesterday closed above the hurdle of $1229 which is taken as a positive for the near term price movement.

On the daily chart-
Gold is trading above the $1229 mark which now is an immediate support confirmed by a bullish ray line. This price movement in the shaded region shows the range this metal can continue to trade into if its low of $1220 (A) is not breached. The shaded region demonstrates the potential of the up-move with the high at $1274 (B). But the run-up is not that easy with $1248 acting as a major resistance where the metal might consolidate before heading higher.
On contrary a conclusive breach of $1220 may spill over towards $1208, and if this level fails then metal might test the support at $1196-$1198 zone.

Overall the metal is in a bullish tone expected to test $1248 in near term with $1300 as a long term target.


Silver’s weekly outlook

Silver has been in a major uptrend registering new highs from past 6 weeks after hitting a low of $15.675. Since then it has gained $1.804 incrementally over the weeks showing more solidarity over gold which is more volatile. Both the precious metals have been on a tear over safe haven buying broadly due to worries over U.S policies, global uncertainties and a weakening dollar, though gold had posted a negative weekly return in the same period where as silver was in a clear uptrend mounting week on week gains.
Demand for silver is also higher than gold because of its industrial usage.

On weekly charts-
Technically silver is in a bullish momentum with prices expected to test new highs due to fundamentals supporting the buying side.
A triangle is formed on the chart where the price might face a resistance at $18.070 (A) on the upside suggested by intersecting bullish/bearish ray-lines. Whereas metal should find short-medium term support at $17.200 (B). The metal has a big support at $16.100 (C) which may be tested if situations take a turn for the worse.
Overall the metal is trading with a positive bias and is expected to make new highs.


Gold’s weekly outlook: Feb 06-10

Gold had hit a fresh 8-week high of $1227 which was followed by a consolidation between the range of $1208-$1220 before the metal had closed at $1121 for the week. This closing above a key hurdle of $1220 shows the gold is trading in a positive bias backed by the fundamentals which broadly supports buying into the metal leading it towards newer highs.

Gold gained $30 this week rebounding from $1188 levels,hitting a fresh high before settling above a key hurdle price point which it was facing from past 2 weeks.
On weekly chart-
Gold now has a support at $1208 which was initially acting as a resistance.
Gold price has moved into the shaded region which has a low of $1220 (A) and a high of $1300 (B). If gold continues to remain in this region, it opens up a big upside towards the next crucial resistance at $1300 levels. Chart has a resistance at $1247-$1248 which is confirmed by the intersecting bullish and bearish ray-lines.
On contrary a conclusive breach of $1208 may lead the metal towards its next support area of $1198-$1200. If this zone fails to hold then a retest of the crucial support at $1182-$1184 maybe on the cards.
Overall the yellow metal is trading with a positive bias with higher levels eyed in coming weeks/months.


Gold back on track as dollar resumes downside

Gold prices gained in Asian session on growing global tensions between Iran and U.S over a missile test this week by Tehran backed by a weaker dollar which resumed its slide post Fed outcome. A non-event Fed meet yesterday had caused a slip in gold prices as the comments suggested that the outlook of possible 3 rate hikes in this year still remained intact. On a positive note Gold yesterday closed above the $1208 mark obliging the support.

Technically gold is trading in a range between $1200-$1220 with prices facing a resistance/selling near $1219-$1220 levels and now the metal seems to find its feet at $1208 which though still remains a crucial pivot point for reversal in trend.
On chart-
The shaded area shows the range this metal can trade further into if it continues to stay above the $1210 mark. This shaded area has a high of $1295 and above which the metal can possibly test taking into account the ongoing tensions and worries. Though the metal faces a key resistance at $1248 which may not allow smooth sailing towards the highs. If successfully crossed the metal would hit into another resistance at $1275 (A) before touching the $1300 mark. Overall the bias is positive and the metal is expected to gain in coming weeks/months as worries are not looking to settle down in this year taking into account major political events lined up.