Gold’s weekly outlook: March 06-10

Gold fell on consolidation/profit-taking in the last week from the high of $1263 to settle at $1225.5 after gaining consecutively for 4 weeks. Gold slumped after completing the target of $1262 which generally happens when a term target is met followed by unwinding of long positions. This week gold started positively but was blocked by the resistance from where it saw a downward trend.

On weekly charts-

Gold snapped out of the trading range resulting in incremental selling pushing the prices lower towards the sub $1220 levels. Gold broke the support of $1229 (B) on the closing basis which now is acting as a short term resistance. On the chart, $1218-$1220 (C) is seen as a good support confirmed by intersecting ray lines where the price might find its feet and this price point offers a good re-entry into the metal for the initial target of $1238 as it is a fairly good resistance and even higher. On the flip side gold has a big support at $1208 (A) which if taken out might trigger a sell-off towards $1198.

On larger terms, gold is into a consolidation phase with a support at $1218 which can be used to re-enter and build fresh long positions with a trading stop loss at $1208 for the targets of $1238 and $1248 in short/medium term and $1268 for a longer term for the coming days/weeks.

gold8

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