On the chart –
Gold registered a fresh 52 week high and still remains in strong demand as circumstances around the globe both bubble in equity markets and geo political tensions linger. Gold’s closing above the support also suggest momentum is still with the bulls. We have 2 scenarios –
1. The closing above the support suggests the downside is limited and if the support holds it can climb back to its fresh 52 week high of $1365. If this is held it can rise to the highs of $1374.
2. There are no shorts trades unless the support is broken, and if broken the downside is limited to $1331.
view – Bulls continued the show of strength registering a fresh 52 week high but failed to sustain there. They still remain in the game as the support at $1345 was held and if it continues to be strong then the upmove back to the highs cannot be ruled out. Gold will remain in grip till $1308 is held and its likely that bulls will keep on the winning ways intact. If the support holds and slump in the dollar strength continues gold can see new highs and a run towards $1400 mark is on the horizon.
There are no views as the support was held. Only factor which may lead to a sideways to negative returns is no scope for further rise in weekly .
On larger terms, Gold continues to be in grip and prices are expected to be sideways to higher.
Possible trades are on both sides but largely on long side, gold can be bought above $1354 for the targets of $1365 and $1374 with a stop loss placed below $1345. Longer term target $1400.
There are no short trades unless $1345 breaks, and if it does still its limited to $1331.