After reaching a low of $1,190 per ounce on Tuesday, the spot price of gold spent the next three days climbing 1.99 percent.

Gold prices got the week off to a negative start, as the ratification (by the troika ) of the Eurogroup’s four-month extension of the Greek bailout helped tarnish the yellow metal’s “safe haven” appeal.  Gold prices took another dip on Tuesday, as Federal Reserve Chair Janet Yellen began her semi-annual monetary policy testimony before the Senate Banking Committee, which was repeated again on Wednesday before the House Financial Services Committee.

Gold prices began to head higher on Wednesday, after it became clear that the Fed was in no hurry to begin raising the federal funds rate.  Higher interest rates bring strength to the dollar.  Because gold prices are measured in dollars, dollar strength pushes gold lower.

The last two days of the week brought higher prices for gold, after a number of reports from China indicated a significant increase in the nations gold-buying, especially during the Lunar New Year holiday.  China’s official “Year of the Ram” gold coins were sold-out much earlier than anticipated.

The spot price of gold ended Friday’s session at $1,213.70 per ounce – representing a 0.86 percent gain from the previous week’s close at $1,203.30 per ounce.  Gold’s spot price is 1.24 percent below its 50-day moving average of $1,228.96 – although it is now positive for 2015 by 2.57 percent ($30.50).

The chart below depicts the trading activity in the SPDR Gold Trust ETF (NYSEARCA:GLD) during the past 180 days (Chart courtesy of Stockcharts.com ).

After closing at $115.28 on Friday, February 20, GLD declined to the most-recent week’s low of $114.29 on Tuesday, February 24.  The next three days of advances brought GLD to a closing price of $116.16 per share on Friday.  GLD ended the week 1.55 percent ($1.84) below its 50-day moving average of $118.00.

GLD’s Relative Strength Index (RSI) climbed to 42.44 from last week’s 37.78.  The MACD is edging slightly upward, as the signal line declines, suggesting that GLD could continue to advance during the immediate future.

The last word:  China’s insatiable demand for gold helped push the yellow metal’s price higher during the last three days of the week, despite a strengthening dollar.