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Gold eyes further gains after pushing to a new seven-month high
Gold topped $4,371, building on a weekly run aimed at its biggest weekly gain since late January.
Gold extended its advance into Friday, with bulls resuming after a brief pause and pushing prices to a new seven-month high at $4,371. The move left gold on track for its biggest weekly gain since the third week of January, according to Action Forex.
Action Forex said disappointing US July labor data helped cool expectations for a Fed rate hike in September, supporting demand for the yellow metal. The market is also looking ahead to the release of the US inflation report for July, due next week, for more clarity on the near-term monetary policy outlook.
Technically, Action Forex noted that gold broke through the $4,304 level, a prior barrier tied to the Fibo 38.2% retracement, with a weekly close above it meant to confirm the bullish signal. The next resistance area is listed at $4,358, near the top of the daily Ichimoku cloud, with the potential for a consolidation or profit taking before any further push.
Targets cited by Action Forex include $4,390 at the 100-day moving average, followed by $4,400 and $4,416, tied to a round-figure level and a 50% retracement, respectively. The outlet added that dips should ideally stay above the broken Fibo 38.2% barrier to keep the bullish structure intact.
Latest closeGold $4,292.00 ▲1.1%