GOLD traded higher during this past week, as the safe havens were seen bid. The yellow metal traded close to the $1322 level. It looks like that it is under correction as of writing, but can be considered as a buying opportunity. GOLD buyers managed to break an important resistance area during this past week, which means more gains are likely in the coming days. There is no major risk event lined up later today, so it is likely to consolidate in a range in the upcoming session.

There was a critical bearish trend line formed on the 4 hour chart for GOLD, which acted as a resistance on several occasions. The mentioned trend line was breached earlier during this past week. The most important point is that GOLD buyers manages to pierce the 100 moving average as well. GOLD is currently trading around the 200 moving average, and if it falls lower, then the broken trend line might act as a support. Moreover, the 100 moving average is also around the same area, so sellers are likely to struggle around the $1300 level. Only a break and close below the 100 moving average could ignite more losses in the yellow metal.

On the upside, the 200 moving average might act as a resistance, and if it paves way then a run towards the last high is possible. Any further gains might take the prices close to the $1340 level.

Overall, dips might provide a nice buying opportunity, but we need to keep a close eye on the 100 moving average, as a break might turn the bias to bearish.

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Posted By IKOFX Technical Team: Online Forex Broker

Website: http://ikofx.com/