On the chart –
Gold had a volatile week giving opportunities to both bulls and bears but ended up favoring the bears yet again for the second consecutive week. Gold held on the key support of $1308 in the $1300s which must be held for the prices to move up again. We have 2 scenarios –
1. As gold held the support it bounced back in the last week, if this is held then gold can move higher to $1317. If this point is crossed then it can go higher to $1331. If this is conquered then it can move towards $1345.
2. There are no short trades unless the support is breached and if broken the downside is limited to $1297.
view – Bulls lost the party again but were able to held on to the key support of $1308 in the $1300s which can help them to lead the surge again. The week started off in good fortune for the bulls as they climbed to $1345 before the steam was lost and it toppled lower to test the support at $1308. For bulls to remain in the game $1308 must hold and if held we can see the prices reversing the 2 week weakness.
view – Gold broke through the support of $1317 and closed below it suggesting weakness in the demand of yellow metal. If the price falls below the support of $1308 it can go lower towards $1297 which is a key decisive point for the metal.
Possible trades are on both sides but largely on long side, gold can be bought above $1320 for the targets of $1331 and $1345 with a stop loss placed below $1317.
There are no short trades unless $1308 breaks, and if it does still its limited to $1297.