Gold analysis next week
Gold price tested 1298$ last week and made low of 1280.20$ when market dropped from higher levels. Since many weeks I am updating a major support of 1278$ – 1280$ in my last gold reports and it has maintained good base since then. Xauusd did not break that support despite good Non farm payroll numbers from US.
Non farm payroll numbers came better than expected and it was a surprise due to last month numbers which was a shocker as well. Non farm numbers re-assured market US economy is on right track however we have seen some cracks in US economy last month and dovish fed is also a proof its not so rosy.
Trade talks between US & China coming to an end. President Trump hinted that talk are going in right directions and both countries would reach to an agreement very soon. However we still did not get an update what tariffs and what compromise US is proposing or China’s stand on new tariffs.
Dow Jones also closed higher and hinting one more lifetime high soon. The way talks and US posting its positive data we may see new lifetime high in Dow Jones very soon.
This week we have ECB monetary policy and Fed meeting minutes. Both will be crucial for precious metals and market. This will give further direction to gold and silver prices. We might see another dovish statement from ECB once again this week which will ensure crumbling European economy.
For now we have a good support on gold chart at 1278$. If traders break and close below this base. Then expect more pressure in xauusd till 1252$- 1226$.
Resistance in gold chart stands at 1309$. If traders break and close above 1309$. Then expect good rise in gold price till 1330$ – 1355$ very soon.
Conclusion: Last week gold price crashed and tried to recover in the end. This week also we need to watch closely, Trend is still in positive zone till our support of 1278$ is intact. Buy in dips would be good strategy till support is intact.
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