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.