Gold Rises But Posts Weekly Losses

26 jul

Gold prices rose 0.3% to $2,371.23 per ounce in Asian trading on Friday, with August futures up 0.7% to $2,369.90. However, gold had a weekly decline of 1.2% due to a strong dollar and expectations of higher interest rates. The gold price has corrected -5.33% since July 17.
Gold has hit record highs in July, but then pulled back following profit taking and volatility. U.S. second quarter GDP data beat expectations, which dampened safe-haven demand for gold.
Traders are awaiting data on the PCE price index, the Fed's preferred inflation gauge, which will influence the rate outlook. Inflation is anticipated to have slowed in June, which could keep rates steady and possibly lower in September.
Other metals have also suffered losses, with platinum down 2.7% and silver down almost 5%. Copper has stabilized, but recorded during the Asian session its third consecutive week in the red due to weak demand from China.

Looking at the chart the strongest trading zone in the last month marks the area of $2,326 in the bell while the Control Point (POC) zone is located below $2,050 for the moment. The RSI marked on July 15 a directional turn to correct the price as shown in the chart and at the moment is at 47.26%, we can only wait for the publications to observe the directional trend that the market will take in the coming weeks.
Ion Jauregui - Analyst ActivTrades




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