Gold rose $2.25 to $1275.70 on Friday and gained $22 on the week.
Geopolitical risk from Iraq, Ukraine and safe haven demand stoked the gains but in the bigger picture it’s still a retracement from the late-May breakdown.
Gold daily
The good news for the bulls is that prices have risen above the 68.2% retracement. The bad news is that congested resistance at the 200dma, 55dma and the downtrend since mid-April high.
My sense is that fast money is short but hasn’t been squeezed yet so I suspect a run at those levels or $1300 is coming in the days ahead. The risk is that the US dollar catches a bid and commodities slide.
