Gold prices traded to nearly four-month highs as the dollar came under pressure after the euro rushed on hawkish European Central Bank meeting minutes signifying monetary policy tightening may soon follow.
The hawkish tone of the minutes added a rush in the euro, pressuring the dollar toward fourmonth lows, while weaker-than-forecast wholesale inflation for December intensified the dollar’s retreat supporting a slight increase in gold prices.
The Labor Department said Thursday its producer price index for final demand fell 0.1% last month after rising 0.2% in November. In the 12 months through December, the PPI rose 2.6, missing expectation for a 3% rise.
Gold 4hr chart has formed “Bullish Rectangle chart” pattern. The last session seems consolidated but bullish in trend ended up near the resistance level. The market is likely to continue on the same trend once it breaks above the resistance level holding at $1327(29400). The upside rally could test all the way through $1330-1335(29475- 29600) levels in the upcoming sessions. Support holds at $1310(28975).
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