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Below are Quote and Outlook on Gold By Mr. Abhishek Bansal, Founder Chairman, Abans Group. 

Gold to face stiff resistance near $1807-$1818

Gold is marginally up from the previous day’s closing but still sharply lower from a recent high of $1919.20 registered on June 1st. Thursday’s weaker than expected US ISM manufacturing data was supportive for gold prices however strength in the US dollar index is likely to keep gold prices under poressure.US Dollar index is currently trading near 92.64 which is sharply higher from the recent low of 89.53 registered on May 25th.

Gold prices are likely to get fresh direction from today’s NFP data for June Month. Non-farm payrolls are expected to rise +711,000 in June, up from the May report of +559,000, also the US unemployment rate is projected to fall by -0.2 points to 5.6%.

On the economic data front, weekly US initial unemployment claims fell by 51,000 to a 16-month low of 364,000, against expectations for a 24,000 drop. However, continuing claims rose by 56,000 to 3.469 million. The June ISM manufacturing index fell by 0.6 points to 60.6, which showed weaker manufacturing confidence than expectations for a 0.3 point decline to 60.9. However, June US ISM prices-paid index rose sharply by 4.1 points to a 42-year high of 92.1. The May Eurozone unemployment report fell by 0.2 points to 7.9%, against expectations for a decline to only 8.0%.

Gold prices are likely to face stiff resistance near 20 days EMA at $1807 and 50 days EMA at $1818. Meanwhile, immediate support levels could be seen around $1767 and $1757

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