Gold on Thursday 18th May 2017, Gold prices up by 86 pts closed at 28707 trading range between 28567-29004 and April Comex Gold futures closed at $1252.80 division of the New York Mercantile Exchange.
Stronger than expected U.S. jobless claims and a better than expected Philly Fed Index helped buoy the dollar, taking the edge off gold prices. The release of upbeat economic data came amid continued U.S. political turmoil in Washington, after the Justice Department appointed former FBI Director Robert Mueller as a special counsel to lead a federal investigation into allegations that President Trump collaborated with Russia during the 2016 election.
Meanwhile, Cleveland Federal Reserve Bank President Loretta Mester on Thursday repeated her call for further U.S. interest rate hikes in the wake of recent U.S. economic data, showing that the rate of employment and inflation is close to matching the Fed’s objectives.
FOMC Meeting held on May 24
Traders carefully examine them for clues regarding the outcome of future interest rate decisions.
As per Our Research outlook, two targets have been reached as a result of the formation of Double Bottom Pattern. It led to reversal from 28000 level which is the base price to reach upside 28500-29000 level.
We could notice for the past two days that the speed of the Gold rally was comparatively higher than the Silver movement. It is evident here that silver met out resistance earlier. However, we could see that gold reached resistance at 29000 level just yesterday. As a result, booking profit and market came down drastically in the closing session.
The fate of the Gold market had been determined to reach upside. If you have noticed keenly, there are a numerous reason stated when it reaches the higher side. The primary reasons are usually referred to either America or Trump’s decision making in a few sectors. However, you can clear see that we have mentioned the exact reason for pullback being “Double Bottom Chart Pattern”.
Now we are measuring Fibonacci retracement level, where gold stands 50% of the area at 28700. Next Retracement level (38.2%) at 28540. ($1240) strong support. Once it breaks, then the downside is expected to reach 28300($1234)
Today’s Research Report call:
Gold Buy on Dips 28550-28575 Target 28750-28850 Stop loss at 28500.
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