Published on 16/03/2017 10:43:03 AM | Source: Enrich Commodities India Pvt Ltd
Buy Gold Dips on 28320-28350 target 28650-28900 Stop loss 28200 - Enrich Commodities
Gold on Wednesday 15th March 2017, Gold prices down by -91pts (-0.32%) & closed at 27985 trading range between 27907-28054 and April Comex Gold futures closed at $1200.70, division of the New York Mercantile Exchange.
Gold prices were little changed on Wednesday ahead of the Federal Reserves expected rate hike later yesterday, while a slump in the dollar provided respite for the yellow-metal.
Overnight, the market noted the widely expected fed rate hike of 0.25% on Wednesday by the Federal Reserve Open Market Committee (FOMC), which marked the highest Fed Funds rate since October 2008, with up to three increases seen this year.
Golds wavering comes as investors refuse taking risks or making new decisions ahead of the Feds expected rate hike, as the economy reaches the banks employment and inflation targets.
On the other hand, the dollar fell against a basket of currencies after rising for two sessions, as consumer prices rose less than expected last month, but dollar’s fall failed to underpin the precious metal due to Feds expectations.
Traders may note today’s economic event
Thursday, March 16th
1. U.S. Building Permits (GMT 17:30 LOCAL 5:30PM)
Building Permits measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market.
FORECAST 1.260M PREVIOUS 1.285M
A higher than expected reading should be taken as negative/bearish for the bullions, while a lower than expected reading should be taken as positive/bullish negative/bearish for the bullions.
2. The U.S. is to publish data on initial jobless claims (GMT 18.00 Local Time 6:00 pm)
Initial Jobless Claims measures
Forecast 240K Previous 243K
Gold prices were moving slightly lower broken below at 28000 Fibonacci 61.8 % level, and in this place usually potential buying opportunity given us on yesterday we advised past three days. At the same time, I told market will turn back into rally to reach 28500-29000 given time frame two weeks. But it might be reach within week.
As per technical outlook gold formed yesterday on candle “Natural doji” in this candle closed bottom of place as well as Fibonacci retracement level 61.8 % and most of time market pullback can be considered as a buying opportunity for accumulation area.
I give the idea about the market revised exactly what we wanted, and yesterday we clearly point out gold market correction on over we are in buying area.
Today morning possible reach our first and second target 28500-29000 and break of this level would lead to a test of the February highs at 29800. Support is seen near the weekly lows at 28000.
Today Research Reports call:
Gold Dips on Buy 28320-28350 target 28650-28900 Stop loss 28200.
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