The final day of last week came in with many economic releases, especially from the US, which had a notable impact on Gold and Silver. The US Jobs Report came in with mixed signal, but mostly disappointing, leading the US Dollar Index to close the week below the 100 barrier, continuing seven weeks of consecutive declines.

The weekly close below the 100 barrier increases the risk for further declines ahead, which in return, might keep the bid on both Gold & Silver for the time being. In today’s article, we will take a look on both metals, and what to expect during the days ahead.

Gold Stabilizing Above 1200 (Bullish Sign)

Gold has been rising since the beginning of the year; Gold advanced with more than 1% six out of the past seven weeks, which seems to be a strong signal over the coming weeks.

Looking at the weekly chart, Gold closed last week strongly higher above $1200 barrier. Moreover, it also closed above the previous weekly high, showing some sort of a bullish engulfing candle, which is considered as another positive signal on the weekly chart.

The Technical Indicators are also positive on most time frames. RSI has just crossed above 50 midpoint, while Slow Stochastics is now trading above 80’s which keeps the door open for further gains ahead, as long as it stays above last week’s lows around $1200.

On the upside view, there is no significant resistance area before $1237, which should be watched carefully, as a break above that resistance, would clear the way for another rally above $1240.

As for the daily chart, it’s also positive. However, we need to see a clear daily close above Friday’s high, which might be seen later today.

The short-term support area stands around $1220, which is still holding since the beginning of the day. The technical indicators are also positive. RSI is above 65, while stochastics is trading well above 85.

In short, as long as gold stabilizes above $1200 this week, the outlook remains bullish with a possibility to test $1230, $1237 and $1240. Otherwise, traders should be ready for another pull back below $1200.