Gold prices drifted above breakeven aided by ongoing dollar weakness ahead of an inflation report which could strengthen the Federal Reserve’s case for more aggressive monetary policy tightening. The dollar dropped for a second straight day in row pressured by large gains in both the euro and yen, helping gold prices remain steady a day ahead of an inflation report which could tender markets with new path.
Gold daily chart has formed "Descending channel” pattern. The last few sessions seems bullish in trend as the prices seems to have already broken out the channel’s resistance slope line itself. As per the technical aspects of the pattern, a long-term bullish momentum is indicated in the upcoming session as the 50-day moving average crossovers the 100-day moving average in the technical chart. The upside rally could test $1340-1350(30380-30630) levels in upcoming weeks. Alternatively, if the market breaks below the key support level at $1325(30005), then sellers might take control over the same. Resistance holds at $1350(30630) and long-term support at $1310(29630).
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