Review of Gold for June 16, 2014
The yellow metal gained support due to the Middle East concerns. The metal moved to a 2-week high. In Asia's session, it is trading at $1,282. In the weekly chart, the metal gave an upside breakout from a descending pattern. We recommended twice to buy, the first one, at $1,253 and the second time, at $1,278.50. Our targets are open at $1,284.50, $1,286, $1,289.60 and $1,296.50 levels. Currently it is reaching a critical resistance level at $1,285.50 (50-day SMA). Once the metal crosses this, it can extend the rally up to $1,288.70, and $1,297 levels. A day close above $1,285.50, the metal will gain some more strength and again a safe buy will activate above $1,288.70 for $1,297 levels. A week close above $1,297, the bulls will take the metal up to $1,310 levels as an initial target. This week we can expect it going up to $1,288.70/$1,289 or $1,297 levels. Traders can book profit at the current market price $1,281.50.
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