Gold prices endured a volatile time last week but today the price of the yellow metal is advancing, helped by headlines emerging from Crimea.
The price probed the $1330 level early in today’s session, but as the day continued the buyers returned. Reports of gunfire at a Ukrainian base in the Crimean peninsula gave further upward impetus, which means that we are now looking at the $1353-$1355 area from last week.
The observation from the previous week, that $1360 remains the key resistance level, remains intact. Crucially, the price is not overbought on a daily chart, and the 50-day moving average is still on course to cross above the 200-DMA; the last upward crossover of these was back in September 2012. A clearance of $1360 would signal a possible retest of the $1377 area from September 2013, with a fresh medium-term high in sight around $1430.