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FXTM: gold traders eyeing $1,600/oz level on the charts

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The area around $1,600 an ounce will be a key one on the charts, said Lukman Otunuga, senior research analyst at FXTM. Gold tumbled Thursday alongside a “brutal” sell-off in equities, as investors were forced to raise money to cover margin calls, Otunuga said. As of early Friday, the analyst noted that the precious metal had fallen 5% so far this week and was on track for its biggest weekly loss since 2011, with an appreciating U.S. dollar adding to the pain. Gold ticked higher early Friday, however, with spot metal up $10.30 to $1,585.70 an ounce as of 8:38 a.m. EDT. “Focusing on the technical picture, prices are bearish with sustained weakness below $1,600 opening the doors towards $1,555,” Otunuga said. “If bulls are able to secure a weekly close above $1,600, the next key level of interest will be found at $1,620.”

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