It is very much likely to see higher gold prices next week, as signs for gold have turned bullish after a mixed start for the market in 2013. This is at lest the short to middle-term prospective, according to the majority of market participants.
Gold futures settled with a loss Friday, pressured by strength in the dollar, but prices scored a gain for the week as investors mulled recent data from China and the U.S. for signs of investor demand.
Gold for February delivery slipped $3.80, or 0.2%, to settle at $1,687 an ounce on the Comex division of the New York Mercantile Exchange. The contract was 1.6% higher for the week.
The gold market has put in a choppy trade for 2013, but after holding support at this week’s lows at $1,669.40 an ounce and then rallying on Thursday off of session lows to close with gains, traders expect prices to have enough momentum to take out resistance at the $1,700 an ounce area.
Gold prices are likely to make a strong recovery in the coming week and gain momentum. Gold may retest $1,720, the 200-day moving average.
However, gold may continue to trade sideways as there was no really a strong breakout on either side till now. Gold didn’t gather enough momentum to break through the $1,700-$1,710 in the past week.
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