Spot gold posted new seven-year high on Friday, in extension of strong six-day advance from $1561 higher base.
Persisting fears about coronavirus spreading beyond China and negative impact on global economy, maintain strong safe-haven demand and keep gold price well-supported.
The yellow metal is on track for the biggest weekly rise since early Aug 2019, with weekly close above $1600 psychological level, to add to bullish stance.
With no significant obstacles until $1685/$1700 zone, the way remains open for further advance.
Daily techs are bullish but overbought, however, no firmer negative signals being generated yet.
Bulls may take a breather on week-end profit-taking, with dips to be ideally contained above $1600 level and seen as positioning for fresh upside action.
Res: 1636; 1639; 1642; 1650
Sup: 1631; 1618; 1611; 1603
Interested in XAU/USD technicals? Check out the key levels
- R3 1647.5
- R2 1635.64
- R1 1627.65
- PP 1615.79
- S1 1607.8
- S2 1595.94
- S3 1587.95
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.