Weekly Outlook: Is Gold Heading To $1200 Resistance Zone?


The price of gold recorded more than $30 increase during the last week of 2016, rallying the yellow metal to more than $1160 an ounce as bulls gain strength. The technical bias remains bullish in long term because of a higher high in the most recent upside rally on weekly and monthly timeframes.

Technical Analysis

As of this writing, the precious metal is being traded around $1161 an ounce. An immediate hurdle can be seen near $1200 which is the confluence of psychological number as well as horizontal resistance area as demonstrated in the given below weekly chart. A break and weekly closing above the $1200 resistance shall incite renewed buying interest, validating a move towards the $1240 resistance area – another critical resistance level on higher timeframes.

Weekly Outlook: Is Gold Heading To $1200 Resistance Zone?

On the downside, the yellow metal is expected to find a support around $1156, a key horizontal support area ahead of $1122, the swing low of the last major downside wave and then $1100, the psychological level. The technical bias shall remain bullish in long term as far as the $1046 support area is intact.

China’s Manufacturing Data

There are some key economic news scheduled next week that might impact the price of gold and one of them is the china’s manufacturing data. The Caixin China is scheduled to release the manufacturing data next week. Generally speaking, a better than expected manufacturing PMI figure from China is considered positive for Gold and vice versa. Needless to mention, China is the largest buyer of Gold and other precious metals so a better than expected manufacturing figure hints at increased manufacturing productivity in the world’s second largest economy which consequently boosts its annual GDP. In regards to major fundamental events and their impact on the financial markets, Investoo recently launched some good video tutorials on its website.

Trade Idea

Considering the overall technical and fundamental outlook, buying the precious metal on dips appears to be a good strategy in short to medium term. The above mentioned support levels may be good entry points to take long positions.


Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: Dollar Falls from 10-month High Market Analysis: US Currency Continues to Grow Ahead of GDP Data Release Market Analysis: Gold and Commodity Currencies Resume Their Decline Market Analysis: EUR/USD Takes Hit While USD/CHF Surges Market Analysis: The Yen and European Currencies Headed to New Lows

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: Inflation, EUR/USD, S&P 500, OIL

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Inflation Still Dogs the

Forex Analysis

Market Analysis: Dollar Falls from 10-month High

EUR/USDThe euro rose on Thursday as the dollar retreated since investors remained cautious ahead of key inflation figures due on Friday. Data on Thursday showed the US economy maintained fairly strong growth in Q2, with an unrevised annual rate


US 30 Analysis: Dow Jones Finds Support

September is likely to be the second month in a row that the Dow Jones (US 30) stock market index declined. The last time this happened was... also in September, a year ago. Important economic data was published yesterday: → According

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.