Gold Ends Week Strongly

Gold closed out the week very strongly at 1276.90.

This is above its 200 daily moving average. The relative strength indicator also closed above 70 which is bullish. The +DI line for the ADX indicator is above the -DI line indicating that bulls are in control of this market. Additionally, the ADX line itself is showing an upward trend. Though this is still in the low figures, it does indicate that a trending move higher is now possible.

There is some significant resistance at the 1275 level that gold will have to get through. But if it does, the next resistance level above that is 1300.

Strong weekly gold close

Gold closes out the week strongly.

The gold shares also closed out the week very strongly. Here’s the chart of the HUI:

HUI closes strongly

HUI also closed out the week strongly

The HUI closed strongly above its key outside reversal day of Tuesday. This is bullish. Additionally, the +DI line for the ADX indicator is above the -DI line, showing that the bulls are in control right now. the ADX line itslef is just starting to trend upwards, though this is still at a low figure, it dow indicate that a trend upwards is possible here.

Now let’s take a look at the number of tonnes of gold in the GLD ETF.

GLD gold holdings

GLD gold holdings

After trending down since the middle of 2014, GLD has just started to add tonnes of gold since the start of 2015. On January 1st, there were 709 tonnes of gold in the ETF. Today, two weeks later, there are now  717 tonnes. Though this is only a small increase, it is an increase, and is indicative that western demand for gold has started to pick up.

Conclusion

Gold has closed out the week strongly. There is some significant resistance at this level, but if it battles through this resistance, then there is a pretty clear run to the next level at 1300.

The gold shares have closed the week above their outside reversal of Tuesday, and look very bullish.

The increase in GLD holdings of 8 tonnes is showing that gold is in demand by the west.

 

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