Gold on Tuesday 16th May 2017, Gold prices up by 102 pts closed at 28094 trading range between 28020-28135 and April Comex Gold futures closed at $1236.40 division of the New York Mercantile Exchange.
Gold gained in early morning on Wednesday on the continued chaotic U.S. political situation weighing on expectations for economic policies favoring tax cuts and higher spending and as key lawmakers call for a memo reportedly written by former FBI director James Comey on Trump discussing an active investigation to be released.
Sentiment shifted towards safe-havens on Tuesday, as political turmoil in Washington heightened, after two U.S. officials said President Trump disclosed sensitive information to Russia’s foreign minister at a meeting, last week.
In his tweets, President Trump defended his decision to share sensitive information with Russia, insisting that he had “the absolute right” to share “facts” about terrorism with Russia.
The dollar nosedived to a six-month low, as investors grew concerned that the recent political turmoil in Washington, could delay the Trump administrations plans to introduce its pro-growth economic agenda.
The Silver metal was above to recapture resistance compared to gold market in the recent days. It is astonishing here because, usually it is the silver market which first notifies the change well ahead of Bullion market across all sector directions.
As per our Technical outlook, although the market bounced and lost optimism yet it paved us the way to reach upper side $1245.
We would like to disclose that the Gold prices hit higher range in International price market and on the other hand the MCX gold prices remain low. The value of Indian Rupees noiselessly increased against US dollar and has become strong making it the reason for holding gold prices at lower rates in MCX prices.
Now we can visualize that the projects like Double bottom chart pattern will possibly bounce back from 28000 level and the up move is expected to 28500 levels. This is the last hope that we can consider of having a stopping place at 27900 level.
Another significant incident to note is that the Falling Wedge Pattern also broke out the channel which has confirmed us the trend reversal and the upside rally is expected to 28500-29000 level.
Today’s Research Report call:
Gold Buy on Dips 28110-28140 Target 28250-28400 Stop loss at 28050.
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