Gold: Support at 1295.20/1287.50, resistance at 1312.10/1324.44

New York (July 30)  The technical appraisal of gold uses the 144 day moving average ($1297) which is an excellent gauge for the longer term outlook. The price has spent the past week trading around the longer term technical indicator which continues to rise. The long 21 month downtrend has been broken, whilst the momentum indicators remain in positive configuration. This tells me that when normal trading resumes, the longer term outlook is positive. However, near term news-driven trading is in control and is making for a lack of trend and a lot of false signals. A bearish outside day yesterday would normally open the downside, but it is difficult to trust this signal.

The announcement of increased sanctions on Russia is likely to stoke up the price once more. Near term trading gold needs to be done with one eye on the news. The key support comes in at $1291.70 and then $1280; whilst yesterday’s high at $1312.10 is near term resistance prior to $1324.44.

Source:  FXstreet