Good day forex traders and readers.
Welcome to another look at the price of gold. We last noted a resistance level of $1355. While gold had been receiving bearish pressure for sometime now, it is interesting to note that physical demand remained.
Looking at the Gold weekly chart above we note that the precious metal has climbed above the resistance level of $1355. With the overview of the weekly chart, we observe that gold is bullish since the start of 2014.
We are approaching a critical resistance region of $1400. This is an important resistance to monitor. Should it fail to stop the bullish momentum, $1480 might be next.
Any bearish correction will probably see $1355 followed by $1320.
There is a sense of apprehension in the markets due to the Ukraine crisis. Russia remains in effective control of the Crimea region despite international objection. Traders do not like political flash points as a destabilization of a region may have adverse effects on an economy.
Reports continue to indicate increased demand for gold funds. This may suggest a turning point for gold.