Can gold put an end to six-month of losses?

What gold will do during the next two weeks will be very important for prices ahead of this year’s end. Jobs data and inflation data are closely watched as gold shows promising signs amid escalating geopolitical tensions and intensifying market volatility.

Gold saw a key development mid-week as prices rose from 2.5-year lows and headed towards the $1,700 per ounce. At the time of writing, the precious metal is trading at $1,662.28, up more than 1% on the week but down for the sixth month in a row.

On Wednesday, gold had a key reversal from the lows and ended up with a higher close. This continued on both Thursday and Friday. Looking at the gold chart, this is very positive. Gold markets go from a short-term trend down to sideways and up now.

If the gold market can get back above $1,700, the uptrend will be achieved, and a run to $1,740 would be possible. Before this week, gold technicals were very negative, especially following a drop below $1,680. A steeper decline below $1,600 could have opened the door to a more significant selloff down to $1,290.

The technicals were very gloomy and if gold prices are able to get above $1,706, it can dismiss this downside break.