Gold started off from $ 1768 levels on previous Monday and quickly climbed across the market sessions towards its 100 day moving average resistance at $ 1798. It then fell back to $ 1782 and maintained above $ 1780, it made multiple attempts to trade near $ 1798 levels on Monday and fell back to $ 1770.50 levels. As the week progressed on Thursday it surged higher to cross its $ 1800 levels and marked as high as $ 1843 on Friday and settled the week near $ 1830 levels.
Earlier today gold has seen maintaining its upside momentum and made $ 10 gain to mark $ 1839.60 as its high so far. From U.S CPI month on month will be out and retail sales will be released on this Friday. Gold made its impressive gains after the Jobs report showed slowdown last week, in terms of percentage gold surged 3.5 % compared its last six months low. U.S Dollar index gave up its gains and has dropped below $90 level which could prompt gold could push little more higher this week.
Technically, After piercing through its 100 day moving average at $ 1798 , gold has impressively closed on daily and weekly basis, Gold is currently trading at $1835 and price action has got some upside momentum to take on its next resistance at $ 1850 its 200 day moving average . There could be a pause in rally respecting its key resistance, which is seen on chart analysis between $ 1850/1860 levels. Also to note that gold after marking all time high of $ 2070 last year, it took longer time to break below $ 1860 levels, which acted as a major support before it fell back below to that. On daily charts $ 1850 /$1860 also coincides to be the 61.80 % Fibonacci retracement resistance of last 6 months highs and lows. Support levels are seen at $ 1822 followed by $1798.
Data and Events for U.S this week
- CPI month on month on Wednesday 12th May
- Core CPI on 12th May
- Retail sales on 14th May.
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* Chart Source Netdania