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Below The Quote on Gold - Two week’s up-move in Gold and Silver likely to end, as prices set to move range-bound" By Tejas Anil Shigrekar, Commodities and Currencies Senior Technical Analyst, Angel One Ltd.

The US Dollar Index (DXY) lowest since April, as US CPI eased more than expected in June, thereby leading to bets that the Federal Reserve may announce an end to its tightening cycle after widely expected 25 bps rate hike this month. After hitting a 7 month low which is making gold and silver cheaper for other currency holders. The index penetrated the diagonal line to the downside during yesterday’s session but it failed to end the day below 99 levels. Currently, the dollar index is trading slightly higher but with some weak momentum and the next initial target, if we see an aggressive run to the upside, would be the 101.90 acting as resistance level. Price sustaining above 102.30 levels long term bets can be held in August month.

From the technical point of view, the RSI indicator is rising and is pointing to the upside approaching the 50 level after it bounced off the 30 level. The stochastic oscillator is also moving higher. The price of gold managed to remain above the psychological support of $1900 indicating that the bull sentiment is still strong.

Gold and Silver hangs near multi-month lows. The four-hour chart reflects sellers' strength. Technical indicators at present show overbought reading and the Fibonacci Retracement tool on the intermediate correction, shows the price corrected to 50%, where we expect the price to reverse for the short term. The Fibonacci tool shows potential trend reversals in the commodity market, and measures the weakness of price momentum. It offers a potential low-risk/high-reward entry into the market, where trades use this retracement opportunities for short selling.

Sell Gold 60100- 60300 SL 60700 TGT 56700- 55900
Sell Silver 77700- 78200 SL 80800 TGT 65600- 64100

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