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.

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