Gold Weekly Technical Report 28/7-1/8/2014

Gold moved to the upside last Friday, but over last week, we saw gold mainly trading sideways after the downside move seen with the kick-start of trading over the week. Gold is trading around 38.2% correction at 1305.00 and will be the intraday barrier over the week. Linear Regression Indicators are positive and AROON shows the upside move overtakes the downside bias in addition to the positive crossover on MACD and that supports the upside move as far as stability is above 1292.60.

The only contradiction to the positive outlook is the negative crossover in overbought areas, however we will not focus on the signals as far as 1292.60 remains intact.