The brand new month and week had started with buying, but the day ended with losses. At yesterday's session, the metal re-tested the level of 1085.00 once again. It managed to close above 1085.00 for the second consecutive week.
A trading pattern has been framed in a tight range of 35$ between 1077.00-1112.00 on an intraday basis and 1085.00-1105.00 on a closing basis.
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.
The yellow metal was trading at $1,085.40 during today's Asian session, compared to Monday's closing price of 1086.40. In the weekly chart, the metal managed to hold the channel support trendline 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, $1,077.00, and $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 eleven consecutive days.
A daily close below $1,085.00 opens gates to $1,077.00 initially and $1,065.00 and $1,055.00 later.
Intraday: Intraday support is found at $1,082.00, $1080.00, and $1,077.00. Resistance is seen at $1,087.00, $1,090.00, and $1,093.00.
The metal has been reaching lower lows in the four-hour chart. The metal made a triple top at $1,105.00.
At yesterday's session, we opened a selling trade below $1,089.00 with an initial target at $1,085.00. The metal hit a low at 1085.00. We guess the metal is likely to hold the support between 1082.00 and 1080.00 today bouncing towards $1,090.00 or $1,092.00 Panic will be triggered below $1,077.00. The metal is unlikely to fall below $1,077.00. Use a rise to sell favoring the trend.
Buying is available above $1,093.00 with targets at $1,095.00 and $1,097.00. Strong buying momentum will take place above $1,098.00 towards $1,100.00, $1,103.00, and $1,105.00. Real strength is expected only above $1,105.00 towards $1,110.00 and even $1,112.00.
The material has been provided by InstaForex Company – www.instaforex.com