Gold settled the week higher after a flurry of disappointing economic data rejuvenated investors' recent flight to safety. Since bottoming on July 28th at 17765, the price of gold has risen above 5% and has developed an upward trend. Friday’s weakness can be considered a long overdue rest, but the metal is unlikely to materially weaken, unless it drops below trend line support at 18620. Accordingly, we view the current uptrend to still be intact and would expect a break above the first level of resistance, Thursday’s high of 18790, early next week. Now support for the gold MCX is seen at 18716 and below could see a test of 18705. Resistance is now likely to be seen at 18734, a move above could see prices testing 18741.

Trading Ideas:

Gold trading range is 18705-18741.

Gold settled the week higher after a flurry of disappointing economic data

Gold looks to take support at 18660 and resistance at 18770.

In spot gold looks to take support at 1218$ and resistance at 1226$.