Gold prices could rise this week, building on gains posted on Friday, with some market watchers suggesting the yellow metal may test the upper end of the current trading range, which tops out around $1,640 an ounce.
Those market watchers who see higher prices said it's likely gold will only rise to about $1,630, an area it hasn't bested since etching the upper band of the trading range, which extends from $1,550 to $1,640.
Global gold prices were mixed last week. The most-active December gold contract on the Comex division of the New York Mercantile Exchange settled at $1,618, down 0.83% on the week.
Global gold prices rose on Friday, supported by a broad-based rally that lifted equities and commodities after a surprisingly strong U.S. employment figure for July. The Bureau of Labor statistics said 163,000 jobs were created last month, far above the consensus of 100,000. The unemployment rate notched up to 8.3% from 8.2%.
Daniel Pavilonis, senior commodities broker at RJO Futures stated that, "gold prices could rise into next week, with the market likely to test resistance at $1,630, he said, a level it has not been able to take out. Beyond that is resistance at the top of the current range at $1,640.If it can move above there then it's off to the races."
Looking ahead to this week, performance bonds needed to trade silver and the platinum group metals will be lowered, the CME Group said late Thursday. That may help to attract more activity to those markets as the lower performance bonds, also known as margins, means traders need to put up less money for collateral in order to trade those markets.