Weekly View 12 Aug - 16 Aug

Last week gold tested a low of 30689 (USD 1272.70) but denied and pushed the price back above 31283/31393 (USD 1300), very important level, in the meanings, it is a psychological level, and surprisingly the two fib levels coincide here, one 78.2 % of 27889 (USD 1156.6) to 43459 (USD 1802.40) and the other 50 % of 16420 (USD 681) to 46384 (USD 1923.70), the all time high. For  near term, this 31345 (USD 1300) level would provide support and if the price breaks and holds above 32550 (USD 1350) level, we may see further gain towards 34962 (USD 1450) levels. On  downside, we have 31345 (USD 1300) and 30500 (USD 1265) levels as supports. Break of the latter would indicate that the recovery from 28415 has come to an end and we may see  further price fall.

Starting 22 July, the price traded in between a channel of 32221 (USD 1336.32) and 30785 (USD 1276.77) , 38.2 % and 23.6 % retracement of 38302 and 28463. An assumption is, break  of either of these levels would have a follow through effect on price. For now, the price is trading close to the upper level of 32221 (USD 1336.32), if it is broken and held we may see further price gains.

Trade Happy, Trade Safe :)