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Bannockburn's Chandler: gold headed for best week since August

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Gold is headed to its best weekly performance in four months, while the euro has been stronger and U.S. dollar index softer, says Marc Chandler, senior market strategist with Bannockburn Global Forex. Chandler says gold “is holding above $1,500. It has gained 2.2% this week, which is its best performance since August.” Just before 8 a.m. EST, spot gold was a dime higher to $1,511 an ounce. Meanwhile, the euro was up 0.00549 to $1.11501.The euro has moved higher every day this week,” Chandler says. “Today's advance has carried it to a seven-day high near $1.1145 [as of his research note].  At its highs, it is flirting with its 200-day moving average, which it has not closed above since the end of June.  The intraday technicals are stretched, warning that fresh gains may be difficult to sustain ahead of the weekend.” The spot dollar index was down 0.379 point to 97.155. “The dollar index is off about 0.4% this week, pending the North American session.  It would be the third weekly decline in the past four,” Chandler notes.

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