Gold Technical Outlook: Sideways Trade as Bulls – Bears continue to Battle

Gold Technical Outlook – It’s been a few weeks since gold traders could justifiably complain about being in an uninspiring market but this week the precious metal has been stuck in a narrow trading range, albeit with a slight upward bias.

Yellow Metals Tight trading ranges never last for long and normally preceed a sharp breakout, in either direction. The daily and weekly price charts however have something for both bulls and bears, adding to the market indecision.

Gold prices opened the week around $1,558/oz. before hitting a $1,536/oz. low on Tuesday and then recovering. As I write, the precious metal is changing hands around $1,558/oz. again, leaving gold flat on the week. The week consists of two down days and three up days with the last three sessions seeing gold trade between $1,545/oz. and $1,560/oz.

The daily chart does suggest the potential level and range for further upside with gold trading above all three moving averages, although the CCI indicator is neither overbought or oversold and gives nothing away. If gold moves back into the body of the January 8 bear candle, a move back towards $1,580/0z. and $1,590/0z. may ensue.

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