Gold prices trade higher on dollar weakness and investor expectations for uptick in gold demand ahead of the Chinese New Year. The dollar put on efforts to add to gains following its biggest weekly gain in nearly a year, enabling a sharp rise in gold prices ahead of the start of the Chinese New Year which usually lead in gift buying in the form of gold jewellery, supporting demand for the precious metal.
Gold 4hr chart has formed "Descending channel” pattern. The last few sessions seems bullish in trend as the prices have retested a support level at $1310(29770). As per the technical aspects of the pattern, the market is expected to continue to retest the channel’s resistance near $1335(30395) and then turn bearish. The downside rally could test all the way through $1325-1315(30145-29895) levels in the upcoming sessions. Once the market reaches the resistance level then we can expect the trend reversal. Alternatively, if the market breaks above the resistance level then buyers might take control over the market. The upside rally could test $1340-1345(30520- 30645) levels.
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