Friday's US data depressed the US dollar. Weekend factor and the short covering activity helped gold bulls close above 1085.00 on a weekly basis. The metal managed to close above 1085.00 for the second consecutive week.
Barclays and Blackrock expect the interest rate hike in September, but Goldman Sachs and BNP Paribas expect it to be postponed until December. Finally, the rate hike is imminent. We guess the rate hike event is likely to influence gold prices.
On a monthly basis, the metal fell 7.0% in July amid hopes for the Fed's rate hike and slowdown in the China's economy. The first trading day in August started with green ticks.
The yellow metal was trading at $1,095.80 during today's Asian session. In the weekly chart, the metal managed to hold the channel support trend line at $1,085.00 on a closing basis. The metal has been reaching lower highs and lower lows breaking below the large bearish head & shoulder pattern.
The weekly support is found at $1,085.00, $1,077.00and $1,073.00. A weekly close below $1,085.00 opens gates to $1,068.00 initially, it is likely to extend towards $1,045.00, and $1,005.00 later. 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. It managed to close above $1,085.00 on a daily closing basis for the eighth consecutive day.
A daily close below $1,085.00 opens gates to $1,077.00 initially; it is likely to extend towards $1,055.00 later.
Intraday: Intraday support is found at $1,092.00 and $1,089.00. Resistance is seen at $1,099.00, $1,103.00, and $1,105.00.
The metal has been reaching lower lows in the four-hour chart. The metal made a triple top at $1,105.00 rounded and higher a low of $1,079.70.
We recommend intraday selling below $1,089.00 with a target at $1,085.00. Selling accelerates below $1,085.00 towards $1,082.00, $1,080.00, and $1,077.00. Panic is likely to be triggered below $1,077.00.
Buying is available above $1,100.00 with targets at $1,103.00 and $1,105.00. Strong buying momentum takes place above $1,105.00. Bulls will aim for another 10$ on the higher side.
The material has been provided by InstaForex Company – www.instaforex.com