Gold price downside not ruled out but are we selling?

Gold analysis

Gold price ( xauusd ) broke our major support of 1261$ which we updated in our yesterday’s gold analysis. It broke below 1261$ and tested 1255$. Currently prices are trading at 1258$. It tried to break 1261$ and sustain above in evening session but could not sustain on higher levels. Gold rates melted due to dollar index and recovery in equity markets.

Dollar Index recovered almost 0.50% as its trading at 94.33 after making low of 93.76. Dow Jones Index cruising above 24300 comfortably and Nasdaq trading above 7050 approaching new lifetime high.

Currently at 1.10 am IST xauusd price trading at 1258.50. A good support on gold price chart stands at 1247$, this base is deep but major support. Once traders break and sustain below this level. Then expect gold rate to test more red levels upto 1241$- 1233$ within days.

A good resistance on gold price chart stands at 1262$-1264$ range. If traders break and sustain above our resistance. Then expect mild recovery in xauusd rate upto 1269$- 1275$.

Gold analysis conclusion: Gold trend today is weak. Avoid major buy and keep an eye on technical levels. We are not recommending any trade on these levels. Despite in weak zone a sell trade on any precious metals are big No from us. We would rather wait in market. We did not initiate any signal this week. Last week we had one signal which we exited near cost only. So we would wait rather trading in wrong direction.

We will update this post if any major movement come, near opening hours of London markets.

Silver analysis

Silver price ( xagusd ) trading at 16.29$, Xagusd price sunk below 16.25$ and tested low of 16.14$. A good support on silver price chart stands at 16$, If traders break and sustain below our support. Then expect good pressure in silver price upto 15.80$- 15.60$.

A good resistance on silver price chart stands at 16.55$, This resistance we are mentioning since last week. Once traders break this major barrier and sustain above our resistance. Then expect good recovery in silver rate upto 16.80$- 17$ within days.

Silver analysis conclusion: Silver trend is weak but we wont recommend any fresh selling in this precious metal.

Euro analysis

Euro to Dollar could not sustain its gains and crashed yesterday. Dollar strength threatened euro as it lost nearly 100 pips from its peak. Currently eurusd trading at 1.1647. A good support on eur/usd chart stands at 1.1620, If traders break and sustain below this level. Then expect good pressure in eur/usd upto 1.1580- 1.1540 today.

A good resistance on euro stands at 1.1690, If traders break and sustain above our resistance. Then expect good recovery again in this major forex pair upto 1.1750- 1.1790 today.

Euro analysis conclusion: Euro trend is flat to weak. Avoid any major buy and wait for major resistance to break to take any buy position. We wont recommend any selling in this major forex pair.

We have monthly Durable goods orders and pending home sales data from US today. Stay cautious.

More will update to our signals subscribers.