Gold traded last week in a narrow range of $12.39 an ounce and recorded its fifth straight weekly decline as the US dollar surged. Investors sought safety in the greenback as the Turkish lira plunged 16%, the Russian rouble hit a two-year low and the euro and pound touched their weakest in a year. Though US-China trade tensions are still rising, the yuan has stabilised and Chinese economic data show limited impact so far. Gold has lost 11% since April, and holdings by exchange-traded funds have fallen by 6.3% since late May. The afternoon fixing on Friday in London was $1,214.40, compared with $1,216.30 a week earlier.
Although gold has been rangebound, buying interest in anticipation of later profit-taking was seen as the price weakened. Shortterm speculation on swings remains the strategy. Consider buying at the supports at $1,200 and $1,193 and sell some of your holdings at the first resistance at $1,228 an ounce. If that level can be broken, hold off on selling until the next resistance. In any case, set profit and stop-loss points in case prices do not move as expected. Prepared by YLG Bullion International Co Ltd.