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Hugo in HTO Trading,

Gold: Within a symmetrical triangle

Since the beginning of the year the commodity gained more than 26.0% and last week rose 0.3% plus is in a bullish phase since start of June.

Last week the precious metal tried to rally but found enough resistance to give back to the market most of its gains although closed in the green but near the low of the week, in addition closed within the previous week range, which suggests being slightly on the bearish side of neutral.

The stochastic is setting lower highs while price is making higher highs, signs of a potential bearish divergence.

Expecting an upward move to a weekly resistance zone at 1,433.60 on a break above the previous week at 1,358.02 (scenario 1) however a break below the symmetrical triangle may drag down the precious metal to a key level at 1,242.30 (scenario 2).