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Published on 17/04/2018 10:44:54 AM | Source: Enrich Commodities India Pvt Ltd

Gold struggled for direction as gains on the back of dollar weakness - Enrich Commodities

GOLD

Gold prices resisted to benefit from dollar weakness as fears of a wider conflict in Syria in the wake of recent U.S.-led military intervention receded, denting safe-haven demand.

Gold struggled for direction as gains on the back of dollar weakness were offset by easing fears of further conflict in Syria after the U.S. and Russia avoided any direct conflict following U.S.-led airstrikes on Saturday.

The weakness in safe-haven demand comes despite U.S. President Donald Trump racketing up the pressure on the both China and Russia, asserting that they were playing the “currency devaluation game,” declaring it unacceptable in the wake of increasing U.S. interest rates.

Technical outlook

Gold daily chart has formed “Rising channel” patterns. The last session been a gap up one ended up in bullish trend. The market is expected to continue in bullish momentum, once the same breaks above the key resistance holding at 31400. The upside rally could test all the way through 31500-31600 levels in the upcoming sessions. Alternatively, if the key resistance holds strong then the market might retest the same and turn bearish once again. The downside rally could test 31250-31100 levels. Key support holds at 31000.

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