Good day forex traders and readers.
We last took a look at gold back in August 2013 and back then the situation was bearish. However there were speculations that the US Federal Reserve might taper the economic stimulus soon resulting in a possibility of bullish pressure for the precious metal.
Looking at the gold daily chart above we note that the precious metal is now in a bullish trend since the beginning of the year.
Should the bullish momentum continue, it is a possibility that the previous resistance region of $1355 may once again exert a downwards push. We should be cautious as the price of gold approaches this technical point.
Any bearish attempt to drive the prices down may see $1312 provide some support.
It is always interesting to note that physical demand was never much of an issue for gold. The bearish dips were often attributed to speculative drives. In fact I often read reports where physical gold was being bought up when prices dipped.
I mentioned in the last forecast that the price of gold may rise once the US Federal Reserve tapering began. Indeed with the tapering underway, it appears that bullish demand is surfacing. There are also reports that more investors are buying into gold in view of concerns over the recent emerging markets woes.