After finishing last week flat with a gain of only $0.90 per ounce, gold’s near-term neutral outlook with the one week view points to an average target of $1,779 and suggests that the beginning of an uptrend is unlikely.
However, most experts are bullish in the one month view and suggest the average target price of $1,790 per ounce. The Relative Strength Index (RSI) indicator on the daily chart continues to move sideways near 50, confirming gold’s indecisiveness in the short-term.
On the upside, interim resistance seems to have formed at the $1,790/93 area (static level, 50-day SMA). A daily close above this level could open the door for additional gains toward $1,800 (psychological level) and $1,810 (100-day SMA, 200-day SMA).
On the downside, static supports are located at $1,770, $1,760 and $1,750. Among these levels, the second one seems to be particularly significant with gold having suffered heavy losses the last time it broke below it on August 9.
Despite the broad-based USD strength, gold managed to stay resilient throughout the week with the risk-averse market environment allowing the precious metal to find demand.
After edging higher toward $1,800 during the first half of the week, gold edged lower on Thursday and ended up closing the week virtually unchanged a little above $1,780. In the week starting today (Monday), IHS Markit will release the preliminary August Manufacturing and Services . —TLTP