- Gold was a strong performer and climbed 3.5% last week.
- Bears look for a test of the 1480s on lack of upside momentum.
Gold was a strong performer and climbed 3.5% last week although the risk-off trade has lost some momentum as markets come to terms with on-going geopolitical strife. Should there be prospects of a meeting between US and Chinese trade officials in September, gold can likely continue to give back some ground to the bears on profit-taking and on a break back below the 1480s, a deeper retracement back to the 1430s could play out once the 23.6% Fibo in the 1450s gives.
Bulls will look to the 1528/30s but the price will be expected to hold initial tests. Further out, bulls will look to the 127.2% Fibo target which is located around 1,560, guarding the Oct 2012 highs at 1795. The 1800s arrive as the 2011 highs and the price has touched the 61.8% Fibo retracement of those highs to the late 2015 swing lows.