Gold prices pulled back on Friday managing to close above support levels after finishing positive for the second straight week, as traders expect a U.S. rate cut this month. Gold prices are slightly on the rise this morning benefiting from weaker Asian stock markets. Looking ahead, the key event that will likely drive price action this week will be the ECB's monetary policy decision tomorrow July 25th. The European Central Bank is expected to give signs of further easing.
Despite a strong opening, gold finished the week at $1426 after loosing $20 Friday on high volume as the bears took control. Prices broke below the key technical support at $1427 (S1) however we are still hovering around that level as buyers try to buy back on dips. The trend is still clearly bullish showing an intact uptrend in the short, medium and long-term.
Support: 1427 / 1418
Resistance: 1444 / 1448