Gold had a very flat session yesterday which was in line with most of the US indices. The precious metal opened higher but found selling pressure at higher levels close to $1318. The lack of economic news or data was considered to be reason for gold to trade in flat trajectory throughout the trading session. Gold has been trading in a very narrow range within the Bollinger Bands but above its 20 day EMA which is being considered to be a bullish sign for the time being. The safe haven buying witnessed earlier in the session was offset by some profit taking by the end of the session.
On the daily charts, the precious metal is trading in a narrow range with resistance on the upside at around $1321 and support at levels of $1301. The volumes for the precious metal have completely dried up on either direction and therefore we are unable to see any decisive move on either of the two sides. The stochastic oscillator for Gold is currently in the overbought zones but is showing no signs of pull back from current levels. The relative strength index has turned flat and showing no direction at the current moment. Traders who are long are advised to maintain strict stop losses at levels of $1300.
Long gold from current levels for a primary target of $1321 with a strict stop loss below $1301
Short Gold only below $1300 with a primary target of $1280 with a strict stop loss at $1317
Gold traders would be closely monitoring the geopolitical hotspots like Iraq and Russia which could act as the next trigger for any move in the precious metal space. Another closely watched event would be any move by the FED or the ECB or the Bank of England with regards to the short term interest rates.