Gold: Lush for push

During the past three weeks Gold posted remarkable up-move and gained around 1.9% per week. On Thursday the yellow metal hit a high at $1206.75, which is a level that has not been visited since late November 2016 and more than six week high. The rally was supported by the weaker US Dollar and the large decline in DXY.

Of course fundamentals reached out and touched the price direction. Latest Trumpfication led to overbought conditions on bullion’s market. Later on we witnessed correction and the week was closed at $1197.

Looking to the week ahead there is significant macro data that will be released on Wednesday in the USA. CPI, CPI ex food and energy, Industrial production and Housing market index will stir the markets with medium to high impact. So things are going to be a bit risky for gold. 

On the daily chart technical indicators are showing strong upward move. RSI heads to north with current location at 63%. Stochastic is placed at extremely overbought territory but displaying lack of momentum.

In the short term Gold is seen bullish. First resistance is seen at $1208 and next is located at $1220 area. Support is now placed at $1700.
Generally an exhaustion pullback might be expected at $1185 area. Bearish validation is possible while passing below $1165 (50% Fibonacci retracement of latest up-move).