$1300 level by April, page-9

A combination of a weaker US dollar, some buying, and massive short covering on Wednesday resulted in gold gaining about 1 ½% in value. The rally continued on Thursday and, although it has lost much of its momentum, continued today. The net result has been that gold has gained approximately 2 ½% in value this week, resulting in the largest weekly gain seen since the beginning of February.
On a technical basis, it is clear that the critical support level of $1200 per ounce held as traders pushed prices above normal resistance at 1221. This is now the current support level for gold. Our technical studies also indicate current resistance in gold is at 1231, with major resistance at 1265. It will be most interesting to see whether or not gold prices will continue to rise next week. If that is the case, it could indicate the beginning of a fairly substantial upside move in the precious yellow metal.
For those who would like a deeper analysis, I invite you to watch the Weekend Review, our video newsletter. This video will be available for viewing by 7 PM EST today. Simply use this link to view, or to sign up for a free trial.
Wishing you as always, good trading,
By Gary Wagner