Gold Weekly Technical Outlook

Gold break 1642.4 resistance last week and rose to as high as 1677.5 before forming a temporary top there. Initial bias is neutral this week for some consolidations but downside of retreat should be contained well above 1629.7 support and bring another rise. Current development indicates that fall from 1792.7 is completed at 1526.7 already. Further rally is expected ahead for upper trend line resistance (now at 1770). Though, we'd be cautious on topping there.

In the bigger picture, price actions from 1923.7 high are viewed as a medium term consolidation pattern. There is no indication that such consolidation is finished, and more range trading could be seen. In any case, downside of any falling leg should be contained by 1478.3/1577.4 support zone and bring rebound. Meanwhile, break of 1792.7 resistance is needed to be the first signal of up trend resumption. Otherwise, the consolidation would extend further.

In the long term picture, with 1478.3 support intact, there is no change in the long term bullish outlook in gold. While some more medium term consolidation cannot be ruled out, we'd anticipate an eventual break of 2000 psychological level in the long run