My last video of the week highlighted the tight intraday range gold had been in for most of Friday on low volumes. The key commodity was pivoting around $1285 with support at $1282 and resistance around 1286. The London close, put pay to that as a raft of futures contracts turned the yellow stuff south to close the week a little over $1276.00. The steep fall at the end of the week could be an indication of more weakness to come, the short contract could be either covering of long positions or indeed new short positions as the move through 1280 triggered stops at 1275.
I remain LONG ( on the Daily chart from 1275.84 for the time being with target 1 at 1289.00 and target 2 1300.00. The USD likely to remain under scrutiny as the TAX bill limps through the House and Senate, tensions rise in the Middle East as Iran and Saudi Arabia play ball with Lebanon and the North Korean situation is no closer to a resolution.
In the short term the H1 and H4 look bearish following the Friday sell off, with strong resistance at 1282.00 and support at 1272.00.
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Senior Market Analyst
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