Gold prices have been relatively stable for the past week. The high low range was actually decent at around $25 per ounce, but most of the action was restricted between 1,315 - 1,325 - a mere $10 USD range. This stability is not surprising as we did not really see acute volatility in US stocks nor other major currency pairs. Nonetheless, it is interesting to see Gold not being able to muster stronger gains W/W even though US stocks and USD are clearly trading lower, which should have helped push Gold higher. It is not as if the market is immune to "risk off" and USD direction—Silver was extremely bullish last week. This discrepancy highlights the weakness in Gold and drove the Gold/Silver cross to the top negative price movements list on a W/W basis.
Daily Chart
However, despite the weakness in Gold, technicals remain bullish. Currently, prices are situated above the rising Channel Top. Even in the event that prices break below the Channel Top, 1,315 will provide further bullish support, making a quick bearish sell-off less likely. Furthermore, Stochastic readings showed that we have managed to avoid a bearish cycle from the beginning of last week with the Stoch curve rebounding higher, off the 80.0 level. This coincides with prices rebounding off the Channel Top last Wednesday - a move that confirms the bullish breakout.
Hence, the bullish momentum should remain in play for now - a momentum that is built by institutional speculators continuing to buy. The latest Commitment of Traders report showed yet more gains in Net Non-Commercial Positions which have increased by more than 13K contracts W/W. However, this would also mean that the bearish risk becomes even higher as it is clear that institutional traders are the only thing preventing Gold prices from falling, and once these institutions hit their buying limits we should be able to see a significant bearish pullback.