The metal hit a new low at 1086.70 managing to hold the support level of 1085.00. It closed at 1093.80. The metal closed at the psychological barrier of $1,100.00 at yesterday’s session as well.
The US existing-home sales increased in June at the highest pace in eight years. All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months.
The world’s largest gold ETF, SPDR Gold Trust holdings, faced a decline in output of 0.35%, to 687.31 tons compared to the previous day.
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 $ 1,050.00 during the next three months.
Technical forecast : The yellow metal was trading at $1,099.00 during today’s Asian session compared to Wednesday’s closing price of $1,093.80 . 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 trend line 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. Gold fell $ 1086.90, and the highest since March 24, 2010 the lowest closing level.
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: In the hourly chart, the metal indicates positive divergence, a pullback is expected ahead of the US jobs data release. Intraday resistance is seen at $1,101.00, $1,103.00, and $1,109.50. Huge short covering will take place above $1,112.00 towards $1,118.00 and $1,120.00. Intraday support is found at $1,093.00, $1,090.00, and $1,085.00. Selling is available below $1,093.00
Until the metal holds the $1,085.00 level, range bound is seen between $1,112.00 and $1,085.00.
The material has been provided by InstaForex Company – www.instaforex.com