The precious metal gave a downtick on Friday's session ahead of the Greek election. The election result has just come out. The Greek radical left party wins election. The yellow metal takes this opportunity to move northward. At the early Asian session, the metal is trading with bullish bids, expecting that anti-austerity Syriza party implements new policies to the creditors. The fall in oil prices is also supporting gold as a safe-haven asset. The metal has been facing strong resistance at $1,307.00. In the previous week, the metal managed to close above 50Wsma. Now, the focus has shifted to Wednesday's Federal meeting. The policy makers have repeatedly announced their plan to raise interest rates during 2015.
The weekly support levels exist at $1,285.00 and $1,267.00. Until the prices close above $1,267.00, bulls have an upper hand. Bulls can challenge $1,340 in case if the price breaches $1,307.00 and 100Wsma. We can see fresh buying above $1,307.00 with the targets at $1,322.00, $1,324.00, $1,330.00, and $1,340.00. On the h4 chart, the prices are closed and trading below 35DEMA levels. The 34-hr sma is providing enough support to the prices. We recommend intraday fresh buying only above $1,300.00 with the targets at $1,304.00 and $1,307.00. Strong upward move will emerge only above $1,307.00. The intraday support exists at $1,294.00. The metal will face some weakness in case if the prices fall below $1,294.00 and panic will be triggered below $1,279.00. We recommend selling below $1,283.00 with the targets at $1,280.00 and $1,272.00. Wednesday's meeting will provide clear direction for the near- and medium-term view.
