TenkoFX - Analytics


    419.75 7.25/10
    68% of positive reviews

    Gold jumps to $1285, seems all set to retest $1300 Haresh Menghani

    Following a dip to $1276, Gold resumed its near-term bullish momentum and turned positive to currently trade near session high level of $1285, inching closer to nearly 5-week high touched on Monday.The precious metal reversed intraday weakness, despite of a slight upbeat tone surrounding the greenback, as 'Brexit' worries and continuing sell-off in global equities continue to spurt safe-haven demand of the yellow metal.Going forward, investors will remain busy with various central bank announcements lined-up during the course of the week. The US Federal reserve will announce its monetary policy decision on Wednesday and will be followed by BoJ, SNB and BoE announcements on Thursday and would provide fresh impetus for the precious metal.Given the prevalent global risk aversion, supporting expectations of the Fed holding back policy action, the yellow metal prices are likely to remain buoyant in the near-term. Moreover, the latest leg of up-move for the metal has happened alongside a broad recovery in the greenback and has been driven by global risk-off sentiment. Hence, the ongoing strength seems to be a more sustainable up-move that could assist the metal to reclaim $1300 mark.Important technical levels to watchMomentum above $1288-89 (May 16 high) is likely to get extended immediately towards $1295 (May 06 high) resistance, which if conquered should assist the metal to move back above $1300 mark and retest a multi-month highs resistance near $1303-05 region. On the flip side, $1271-70 area now becomes immediate support to watch for, which is closely followed by support near $1263-62 horizontal area. Weakness below $1263-62 support, the yellow metal could drift lower, but any further weakness now seems to be restricted around 50-day SMA strong support near $1250 round figure.

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree