Gold forecast
Gold price trading opened lower as US and China signaling to finish the trade war which we anticipated. Currently xauusd price struggling at 1286$. Xauusd is facing pressure on multiple front, 10 year bond yield hit highest level since July 2011. Dollar Index performing extremely well supported by good US data, rising treasury yields and week euro. Market is expecting another rate hike in June. If rate increase by 25 bps more then we may see more pressure in precious metals prices.
Currently a good support on gold chart stands at 1275$, If traders tank this base and manage to sustain trade below our support. Then expect good pressure in gold price upto 1270$ – 1262$ today.
A good resistance on gold chart stands at 1294$, Once traders break this hurdle and manage to sustain trade above our resistance. Then expect some recovery upto 1300$- 1307$ today.
Gold forecast conclusion: Gold trend is weak for now, Stay cautious with every trade be it buy or sell. Set proper stoploss in every position.
Dow Jones Industrial Average analysis
DJIA Index trading at 24930, It opened higher today powered by strong dollar index and good bond yield. Last week good sales data gave good push to DJIA. Weak Gold, Silver prices are helping Wall Street to sustain gain and trade stronger. A good support on DJIA Index chart stands at 24780, If traders tank this base and manage to sustain trade below our support. Then expect good pressure in Dow Jones Industrial Average Index upto 24640- 24505 today.
A good resistance in DJIA chart stands at 25050, If traders break this hurdle and manage to sustain trade above our resistance. Then expect good firepower in Wall Street upto 25180- 25400 today.
Dow Jones Industrial Average analysis conclusion: Despite being closed in weak zone, A gap up opening turned DJIA Index from negative to positive. So avoid any sell for now. Wall Street trading in positive zone for now.
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