Gold prices traded low on Tuesday, continuing to ease from multi-month highs amid dollar recovery as investors weighed the outlook of global monetary policy tightening after the Bank of Japan’s cut its long-term bond purchases.
The dollar strength was a drop in safe-haven demand as global equity markets continued to top multi-year highs amid ongoing risk-on sentiment.
Recent data, indicated to ongoing support for gold as hedge funds and speculators increased their bullish bets on the precious metal.
Gold daily chart has formed “Rising wedge” pattern. The last few sessions been bearish in trend as the prices have broken the channel’s Support slope line. The market is expected to continue in the same trend with a small correction on positive momentum and the downside rally could test all the way through $1305-1300(29025-28900) levels in the upcoming sessions. Major Resistance holds at $1320(29400) and support at $1300(28900). RSI reading reduces over 63.70 points.
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