Gold to move lower, sentiment negative; sell on rises until MCX gold price breaches 60,400
时间:2024-06-26 11:33:11 阅读(143)
By Bhavik Patel
The latest US inflation report revealed a contradictory outlook for the U.S where inflation came at lowest level in more than two years but the core CPI which skips food and energy prices as they are volatile came at 5.3% vs 5.5%. That might be the reason that even though the Fed paused during this meet, there are chances of two more rate hikes before the end of the year and no chance of rate cut unless inflation comes down significantly. If the Fed is still dealing with core inflation between 3% and 3.5% at the end of the year, markets won’t be expecting rate cuts any time soon either and this does not bode well for gold.
Gold price breached its 100-day moving average in the COMEX but recovered as the US dollar drifted lower on account of a rally in Euro. Short term sentiment is still negative as gold had breached its 50-day moving average on May 17 after trading above it for the first time on March 13. Short term sentiment is expected to remain negative as gold in MCX continues to remain under the 13 and 20-day moving average.
Yesterday we saw some bounce back as the US dollar drifted lower but unless 60,400 is not breached on the upside in MCX, the trend still remains to sell on rise. 58,300-58,000 is the next support as 50% retracement comes around that level taken from highs of 61,845 and low of 54,771. 59,140 is the make or break zone as that is where 61.8% retracement is and since 26th May, gold has been taking support around that level. Yesterday it breached that level but managed to close above that level. So any closing of the gold rate below 59,140 would warrant more selling pressure till 58,300-58,000. Traders next week can look at opportunities around 59,900 to go short with a target of 58,900 and stoploss of 60,400. As mentioned only above 60,400, can we see a shift in trend from negative to positive.
(Bhavik Patelis a commodity and currency analyst at Tradebull Securities. Views expressed are the author’s own. Please consult yourfinancialadvisor before investing.)
上一篇:Google-backed Slang Labs to use hybrid model of LLMs
下一篇:Wipro’s Q2 results place stock under pressure- Should you buy, hold or sell the stock-
猜你喜欢
- Nifty to surpass 18,100 or correction on cards- 7 things to know before share market opens today
- Gold Prices slip to two-week lows; support seen at Rs 58480-58240, resistance at Rs 58920-59170
- Gold Price Today, 2 Jan- Prices up, dollar softens; traders eye China, central banks, expect lower volatility
- Nifty to trade at 17100-16400 this week, Bank Nifty looks positive; use Iron Butterfly for 28 July F&O expiry
- Nifty to surpass 18,100 or bears to stage a comeback- 7 things to know before share market opens today
- No stock-holding limit likely for wheat
- Buy these two stocks for near-term gains; Nifty consolidating after breakout above 16,000
- Nifty to see buying above 17400, Bank Nifty may top 40100 this week; use Iron Butterfly for 20 Oct F&O expiry
- Gold Price Today, 19 July- Gold slips on stronger dollar; support at Rs 59510-59340, resistance at Rs 59960-60220