Gold is consolidating near $1780 By Mr. Abhishek Bansal, Abans Group
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Below are Quote and Outlook on Gold By Mr. Abhishek Bansal, Founder Chairman, Abans Group.
Gold is consolidating near $1780
Gold prices are currently consolidating near $1780 on the backdrop of marginal weakness in the US dollar index and positive global manufacturing data.
On the economic data front on Wednesday, The U.S. Jun Markit manufacturing PMI unexpectedly rose +0.5 to a record 62.6 (data from 2007), against expectations of a decline to 61.5. Also, the Eurozone Jun Markit manufacturing PMI was unchanged at a record 63.1 (data from 2018), against expectations of a decline to 62.3. US May's new home sales unexpectedly fell -5.9% to a 1-year low of 769,000, weaker than expectations of +0.2% to 865,000.
However, hawkish comments from Atlanta Fed President Bostic are likely to keep gold prices under pressure. He said that a decision to taper Fed bond purchases could be in 3-4 months, and "given the upside surprises in recent data points, he has pulled forward his projection for the first Fed interest rate hike to late 2022."
Meanwhile, ECB Vice President Guindos said he expects "very significant growth in the Eurozone" in the second half of the year which supportive of industrial metals demand but negative for gold prices.
According to the CFTC Commitments of Traders report for the week ended June 15, net long for gold futures slipped by 17351 contracts to 192036 for the week. Speculative long position dropped by 14834 contracts, while shorts gained by 2517 contracts.
Gold prices are likely to face stiff resistance near $1794 and $1826 while it is likely to find immediate support level near $1761-$1749
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