The rise in precious metals over the past months is not only the result of a weak USD. Gold has been showing relative strength versus several currencies as well, including INR. Prices have rallied above the trigger line at ~8540, thus entering a new bullish phase which should bring prices towards the minor resistance at 9190 without too much problem. Our main projection comes in at 9550 which is virtually equal to the pivot highs of 2013 (@9730).
With stops below 8390 risk/reward is very friendly.
- Primary trend: positive
- Outlook: new uptrend, positive
- Strategy: long-entry
- Support: 8390 / 8025-
- Resistance: 9190 / 9550 / 9730
- Outlook cancelled/neutralized below 8390
Weekly chart XAU/INR