Weekly Gold trend

Last week Comex Gold ( xauusd ) price had a bad week . It tested deep water near 1125$ as FOMC hiked interest rate first time in this year . 25 bps made this sharp cut in gold and silver prices . Market could not recover from the blow Fed gave last week . It closed at 1135$ . No major respite came after Fed kicked prices lower than expected . Dow jones tested near lifetime high and gave a small panic when FOMC cut the rate . But later it recovered smartly and closed just 100 points away from lifetime high .

A good major support on weekly chart stands at 1098$ . If traders break this support and manage to close beneath this level this week . Then expect more power to bears upto 1065$ – 1032$ upcoming week .

A good resistance on weekly chart stands at 1171$ . If traders manage to pull prices upto this level and manage to close above this resistance . Then expect some breather to buyers upto 1204$ – 1237$ upcoming week .

Weekly Gold trend conclusion : Trend is in favor of sellers . Avoid major buying this week as its almost Christmas and volumes would be lower this week .

More will update in daily forecast update .

By marafat