FX.co ★ Weekly forecast and an intraday analysis of Gold for July 28-August 01, 2014

Weekly view (July 28-August 01)

The yellow metal was supported by Russian and Ukrainian political concerns, pulling back above $1,300 levels from a monthly low. In the Asia, the metal is trading at $1,306 levels, having opened on a bearish note. We recommend to sell again, until the pair trades above the $1,308.20 (Friday's high) levels. On the upside, it has strong resistance at $1,310.60, $1,314.50 and $1,318 levels. Above $1,318, it can fly up to $1,324 levels. It has been making a lower lows and lower highs for 3 weeks. As of now, this week it made a lower high. On the down side, it has strong weekly support at $1,298 (50WSma): breaking below this, it can push up to last week's low at $1,287 levels. Once it breaks below $1,287, the panic will be triggered up to $1,262 with intermediate support at $1,280, $1,275 and $1,266 levels.

Intraday cmp $1,306

We recommend to sell with a target of $1,300-$1,298. The metal faces more selling pressure below $1,297.50 up to $1,293, $1,290 and $1,287.40 levels. The metal came out of the triangle and trading above that, its a mild bullish case. Buyers can use a dip to buy at $1,300 levels with sl $1,296 or sell again below $1,296.

Recommendation- cmp $1,306.20.

Sell at cmp sl $1,308.20 with targets at $1,305, $1,300.50.

Buy at $1,300.50-$1,297.80, sl $1,296.

Sell again below $1,296 for targets at $1,295, $1,292, $1,290 and $1,287.