Gold traded last week in a range of $24.25 an ounce and recorded its first weekly loss since mid-August, despite a rally on Friday following North Korea’s latest missile launch. US investors grew cautious about accumulating gold as President Donald Trump renewed his tax reform push, while economic impact from Hurricane Irma was less than expected. Strong US inflation data could point to another interest rate increase, but not at this week’s Fed meeting. The afternoon fixing on Friday in London was $1,322.85, versus $1,346.25 a week earlier.
Short-term investment to take advantage of price swings is still recommended. Consider accumulating a position if the price drops to the supporting range at $1,316 and $1,294. If the price starts to move upward, monitor selling closely. Many investors holding gold might seek to take profits when the price rebounds, and as a result it might not be able to break the resistance levels at $1,339 and $1,358. Be prepared to make adjustments if the price moves outside any of these ranges in order to reduce risk. Prepared by YLG Bullion International Co Ltd.