Since the start of the year the commodity gained more than 18.0% and rose more than 3.0% this past week in addition is in an accumulation phase since the beginning of February 2016.
Last week the precious metal rose with a wide range and closed near the high of the week, in addition managed to close above the previous week high, suggesting a strong bullish momentum.
Stochastic is showing a overbought market however is still displaying a bullish momentum.
The commodity is testing the 2015 high where it may prove to be a strong resistance.
Expecting an upward move to a weekly resistance at 1,307.45 on a bounce from a key level at 1,232.26 (scenario 1) and a break below the previous week low at 1215.64 may drag down the precious metal to a weekly support at 1177.76 (scenario 2).