The yellow metal has been moving in a tight range for almost 4 weeks. In the previous week, the metal closed below 20Wsma. Now it is trading at a 3-week low. Investors are awaiting a clear picture of the ongoing Greek saga. The SPDR gold in trust holdings stands at 711 tonnes, an increase to 713 tonnes, posted on June 26, was the largest in four months.

The view on gold is bearish owing to technical and fundamental perspective. The Fed is likely to raise its interest rates after September. However, the recent developments in Greece raised doubts about the Fed's rate hike in 2015. Greek Prime Minister Tsipras decided the intention to hold a referendum on July 5.

Technical analysis: Today, the metal opened higher at $1,187.70 compared to previous week's closing price of $1,175.00. The 20Wsma is seen at $1,190.00. The past 2-week closing pattern indicated a double top at $1,200.00 on a closing basis. The trend-change levels remains at $1,217.00. In the weekly chart, gold has been approaching higher lows. But in the daily chart, lower highs and lower lows formation is expanding. Weekly support is found at $1,175.00 and $1,168.00. Resistance is seen at $1,190.00 and $1,200.00.

Intraday: The support is found at $1,177.00 and $1,175.00. Resistance is seen at $1,181.00, $1,185.00, and $1,187.00. We expect strong momentum above $1,190.00. Bulls are likely to open a buying position with sl $1,175.00. Buying near $1,180.00 is advised with low quantity. Target are at $1,185.00 and $1,187.00 initially, and later at $1,190.00, $1,192.00, and $1,199.00. Bears are likely to open selling position below $1,173.00 towards $1,170.00, $1,168.00, and $1,165.00. Selling accelerates below $1,165.00 initially towards $1,162.00, panic is expected below $1,162.00 towards $1,150.00 and new lows. Gold is supported by the ongoing developments in Greece.

To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com