Gold
Gold price collapsed as dollar index fires from lows and trading at 2 year’s high. Good US numbers and rising dow jones resulted in higher dollar which pressured entire precious metals pack. Silver also collapsed and closed below 14.40$ last friday which is an extremely bearish close for comex silver.
This week we have Fed meeting minutes which will give an idea about how Fed is thinking and if we could see any further rate hike this year. It will also have an insight look about US economy’s health.
We also have European Parliamentary elections and Britain’s numbers as well. These data may also change the course of comex gold. Currently we are trading in weak zone and major weakness is due to higher stock market and dollar index.
But risk of trade war between China & US is still looking and US is also showing aggression towards Iran. These two factors are still valid and in any negative development in any of these factor may boost xauusd price pretty hard.
Currently gold price trading at 1276$. Good support in comex gold chart stands at 1265$. If traders break and sustain below 1265$. Then expect more pressure in xauusd till 1258$- 1250$.
Resistance in comex gold chart stands at 1282.50$. If traders break and sustain above 1282.50$. Then expect good rise in this precious metal till 1290$- 1299$.
Conclusion: Comex Gold trend is flat to weak for now. Avoid any major buy position till market is sustaining below our resistance. Keep an eye on major world events as market is highly vulnerable towards fundamentals for now.
Update 21st may: Market did not move anywhere since yesterday. All levels remain same and trend has turned from flat t negative to flat to positive. Look to buy in dips now
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