Gold
Gold price crashed from 1298$ to 1284$ last night as Dow Jones Index soars after good US data. US posted exceptionally well data yesterday which gave a good push to stock market and dollar index.
Building permits rise from 1.29M to 1.30M , Philly manufacturing Index rise from 8.5 to 16.6, Unemployment claims down from 228K to 212K. Every single data suggests US economy is doing better in almost all fronts. From manufacturing to jobs everything seems very strong in US despite current trade war.
This situation reminds me early late 2007 scenario where everything was so strong and everyone was expecting more 10-20% rise in market due to good economic conditions. I am not suggesting we might see recession once again. I am just advising extreme caution here.
Next week we will have Fed meeting minutes, It will give a good idea about last fed meeting and how Fed may hike or cut interest rate in upcoming months. Fed must be in good position to increase interest rate by 25bps at least this time by looking that strong data.
Currently comex gold price is trading at 1288.50$. Good support in xauusd chart stands at 1282.30$. If traders break and sustain below 1282.30$. Then expect good pressure in this precious metal till 1275$- 1270$.
Resistance in comex gold chart stands at 1292.30$. If traders break and sustain above 1292.30$. Then expect good rise in this precious metal till 1299$- 1307$.
Conclusion: Since last 2 weeks we are seeing gold is influenced by Dow Jones and trading accordingly. So keep an eye on US stock market. US China trade war is still not over and we may see any retaliation by US anytime. So keep an eye on President Trump tweet as well. Gold trend is flat to weak for now but I wont advice any selling here till our support is holding.
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