On Friday 17th March 2017, Gold prices rose up by 98pts (0.34%) and closed at 28509. Trading range was between 28390 -28530. April Comex Gold futures closed at $1229.00, division of the New York Mercantile Exchange.
It is interesting to note that, for the third straight session, Gold raised heading for a weekly rise after preceded by two losses where demand went higher on gold once the profit-taking eased. The rise in gold arrives in spite of the fall in dollar against several currencies. This mirrors higher demand of gold as assumption for a high rate increase this year from the Federal Reserve.
As anticipated, the fed chose to increase interest rates by 25 basis points to below 1%. It announced that, it’s committed to three rate hikes this year. However, employment and inflation data will play a major role in decision making.
It is also to be noted that, after hit by the advancement of dollar’s advance and profit –taking necessity, demand rose on treasury bonds which gave rose to demand of gold.
A continual session is expected early in the week, as gold completed the week with strong technical momentum. G20 meeting will have great impact.
The chances of a currency war breaking out because of the Trump administration and its accusations were a major topic discussed in the Group of 20 finance ministers meeting in Germany.
Information on Today’s economic event Considerable event on Monday, March 20th is not expected on Monday 20th.
We have analyzed that Gold Hourly chart formed “Bullish Symmetrical Triangle”.
The Wait breakout of the symmetrical triangle above green Trend Line is at 28550 levels. And next upside move 28650-28750 on intraday.
This is a situation where we need to be careful. This is predicted because when the break below the trend line is at 28350, the selling pressure will return to 28000 level. It is also anticipated that Gold break above green thick line will be around 28550.
In short term, I would suggest that, although there is a large scope of resistance just above, our target should be the 29000 level. There is a pullback offer expected at any time.
Today Research Reports call:
Buy Gold above 28550 Target 28650-28750 Stop loss 28400.
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