The metal closde at the psychological barrier of 1100.00 at yesterday’s session.
The world’s largest gold ETF, SPDR Gold Trust holdings, faced a decline in output of 0.69% to 689.69 tons compared to 4.77 tons a day before .
Goldman Sachs expects gold prices to fall below $ 1,000 an ounce this year.
According to UBS Wealth Management Giovanni Staunovo, the market is now betting that the Fed will raise interest rates at least once during the year, which means an opportunity of rising holding gold cost. Gold prices are seen to be trading at $ 1,050 during the next three months.
Technical forecast : The yellow metal was trading at $1,095.00 during today’s Asian session compared to Tuesday’s closing price of $1,100.00 .
The weekly trading pattern is framed between $1,085.00 and $1,110.00. A close on either side will lead to more room to trade.
In the weekly chart, the metal managed to hold the channel support trendline at $1,085.00.
The metal has been reaching lower highs and lower lows breaking below the large bearish head & shoulder pattern. In all time frames, the precious metal lost all moving averages.
At yesterday’s session, we advised against fresh selling. Selling accelerates only below $1,085.00. Traders should sell on a rise.
The weekly support is found at $1,085.00, $1,068.00, and $1,060.00. A weekly close below $1,085.00 opens gate $1,068.00, $1,045.00, and $1,005.00. In the monthly chart, strong support zone is seen between $1,045.00 and $1,032.00. The metal fell below the 14-year ascending trendline in the monthly chart. The strong supply zone is seen at $1,134.00, $1,142.00, and $1,163.00 in the extreme case.
Intraday: Intraday support is found at $1,094.00 and $1,085.00. Resistance is seen at $1,103.00, $1,105.00, and $1,110.00. Intraday selling is available only below $1,094.00, buying opportunities arise above $1,103.00 with targets at $1,105.00, $1,108.00, and $1,110.00. An impulsive pullback looms above $1,110.00 towards $1,118.00. Traders eye today’s US existing home sales data. In case of negative data, gold is likely to be utilized the window of opportunity to snap out of its drastic fall.
The material has been provided by InstaForex Company – www.instaforex.com