Friday, September 22, 2023
Homemetal commoditiesGold set for first weekly gain in five weeks

Gold set for first weekly gain in five weeks

  • Spot gold may retest resistance zone of $1,297 to $1,299 per ounce, technicals analyst says.
  • The precious metal is up 1.7 percent for the week.

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Gold was on track for its first weekly rise in five weeks on Friday ahead of U.S. inflation data later in the day that could give clues on the pace of U.S. interest rate rises.

Bullion bumped up against strong technical resistance after the dollar and U.S. bond yields fell this week, helping the metal rise to its highest since Sept. 26.

"We've had a good run, and traders are happy to book some profits ahead of $1,300 considering the strong level of resistance," Saxo Bank analyst Ole Hansen said.

Spot gold rose 0.66 percent to $1,302, rallying after the consumer price index reported a lower increase than forecast. It was set for a weekly gain of 1.4 percent.

Fibonacci resistance and the 50-day moving average come in at around $1,298.

"A close above the psychological $1,300 level would be required for the yellow metal to make a push higher," MKS PAMP trader Tim Brown said in a note.

U.S. gold futures for December delivery settled higher at $1304.60 an ounce.


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