Gold gives back territory towards a 23.6% retracement
|- Gold prices give back on profit-taking into the weekend.
- Bulls struggle at the key resistance and bears look to the 1400 handle.
Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. Gold for December delivery on Comex dropped a well.
Futures in gold lost $7.60, or 0.5%, to settle at $1,523.60 an ounce after settling at $1,531.20 on Thursday. As for its sister metal, silver, spot prices were -0.91% having travelled between a low of 17.05 and 17.33 the high, -1% on the day. September silver dropped 9.2 cents, or 0.5%, to $17.122 an ounce and ended up 1.1% for the week. Precious metals remain in favour overall, however, and profit-taking ahead of the weekend and potential geopolitical headlines have capped the precious metals into the close on Wall Street which ended positively with benchmarks in the green despite trade-war risks.
US trade wars: Two-steps forward, one step back
"The two-step-forward, one-step back escalation in US-China trade tensions had a one-step back week with the Trump administration announcing the 3½-month delay of about 60% of a promised 10% tariff hike on imports from China planned for September 1st. The move did little if anything to reduce trade uncertainty,"
analysts at RBC economics explained.
Gold levels
Gold has been capped by the 1528/30s which were a prior support area where the price has been expected to hold these initial tests. Bulls need to reload and cross this barrier in order to open prospects for a full-on break higher towards the 127.2% Fibo target which is located around 1,560, guarding the Oct 2012 highs at 1795. On the downside, bears can target a 50% mean reversion back to $1,400.
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