Last Friday, gold futures advanced for a third-straight session in a row to end up nearly 2% for the week. Prices for the yellow metal had risen by more than $14 an ounce immediately after the last week’s U.S. jobs report, then trimmed over half that gain as U.S. equities climbed.
Gold for April delivery rose $5.70, or 0.5%, to settle at $1,262.90 an ounce on the Comex division of the New York Mercantile Exchange. At present, gold price continue advancing in an electronic trading.
Positive technical price charts for gold could encourage the yellow metal to move higher next week, above $1,272 which was the high last week.
Gold prices continue to hold in a series of lower lows, which bodes well. Even though the price is stuck in a range, with $1,280 as the ceiling and last week’s low of $1,237 as the floor, prices are trending higher.
The market is climbing up a trend line and the 20-day moving average, and does look like it wants to trade higher. When it trades through $1,280, there should be a quick move to $1,300-plus, maybe $1,313 or even $1,335.
The dollar remains as the most important influence for gold, but the correlation to equities seems to be lessening somewhat.
One of the problems for gold right now is that there are less market participants and less momentum. Gold will close well above last week’s close of $1,239 and it will be higher next week.
The high for the year in April gold so far was $1,280.10 an ounce, hit on January 27.
The gold price is affected by the overall picture — the U.S. Federal Reserve tapering, emerging-economy shocks, equity movements etc.