FX.co ★ Technical analysis and trading recommendations on Gold for February 27, 2014

The metal gained momentum after the dovish testimony by Yellen. The metal hit one-week high at yesterday's intraday session. The metal managed well to hold $1,190.00 twice, but was rejected at $1,222.60, the parallel resistance. The metal fell below $1,200.00 thrice and managed to close above it. It's a good sign to recover. Yellen suggests the first rate hike may not happen before the second half of the year. The US durable goods orders rose in January for the first time in three months. According to the Commerce Department report, the durable goods orders rose to 2.8%. The greenback hits a 1-month high. In India, RBI lifted a ban on gold imports. Nominated banks get permission to import gold on a consignment basis. We expect the imports for February to increase by 40 odd tonnes. On a weekly closing basis, bulls must close above $1,217.00. The intraday support is found at $1,204.00. The weekly and daily resistance is set at $1,223.00. We recommend fresh selling below $1,203.00 with targets at $1,200.00, $1,195.00, and $1,190.00. A daily close below $1,185.00 leads to $1,170.00, $1,167.00, and $1,150.00. Ahead of US prelim GDP, the metal is trading marginally green. In case the US GDP print falls short of expectations, there is a chance of an upside price momentum towards $1,217.00 and $1,222.00. From this view, we recommend buying above $1,212.00 with targets at $1,215.00, $1,217.00, and $1,222.00.

Selling below $1,203.00.

Buying above $1,212.00.