August gold closed sharply higher on Friday as it extends this month’s rally. Fears over inflation have lead to some investors moving cash into hard assets and precious metals as a hedge against inflation. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If August extends the rally off April’s low, February’s high crossing at 1008.90 is the next upside target. Closes below the 20-day moving average crossing at 931.70 would confirm that a short-term top has been posted.
First resistance is today’s high crossing at 982.00. Second resistance is February’s high crossing at 1008.90. First support is the 10-day moving average crossing at 948.90. Second support is the 20-day moving average crossing at 931.70.

Today’s “Trade Triangles”