Trading range pattern
June Gold futures showed the rectangular trading range pattern. Gold prices have been fluctuating between $1,180 and $1,220 per ounce within this pattern. Prices broke above the pattern’s horizontal trend line on May 16, 2015. The improving demand from India and weak dollar supported gold’s price movement.
Gold’s resistance and support
Gold prices increased for the fifth time in a row. This bullish momentum could push gold prices to the resistance of $1,250 per ounce. Prices hit this level in February 2015. The rising demand and energy inflation might support gold prices. In contrast, slowing demand from China might drag gold prices lower to the key support of $1,150 per ounce. Prices hit this mark in March 2015.
The rectangular trading range suggests that prices could broadly fluctuate between $1,200 and $1,260 per ounce in the short term.
Higher gold prices impact gold miners like AngloGold Ashanti (AU), Agnico Eagle (AEM), and Royal Gold (RGLD). These stocks account for 12.87% of the VanEck Vectors Gold Miners ETF (GDX). They also affect gold ETFs like the iShares Gold Trust (IAU).