A Pivotal Week For Gold And Joyous One For Gold Bugs

Last week was a pivotal one for gold as far as the daily timeframe was concerned and for regular followers of my analysis, you will know the reason why, as it is the $1840 per ounce level that has been patiently waiting for a breach. And in a week that saw gold move higher on five consecutive days, it was Wednesday’s price that finally broke this level, closing the session on a strong move higher with excellent volume.

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The volatile price action on the day caused a degree of profit-taking with the precious metal first surging to a high of $1870.60 per ounce, before ending at $1848.30, but more importantly above the key resistance level of $1840 per ounce which of course now becomes a solid platform of support in the move higher. The resumption of the longer-term bullish sentiment was further confirmed on both Thursday and Friday as gold closed out the week at $1868.50 per ounce a cause for celebration for ardent gold bugs, with more expected as strongly rising inflation continues to focus the minds of the central banks. 

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gold weekly chart

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