GOLD TRADES FLAT, MARKETS EYE US NFP DATA
GOLD TRADES FLAT, MARKETS EYE US NFP DATA
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Gold showed minor recovery till $1721.85 on a weak US dollar. But strength in the global stock market is putting pressure at higher levels. The ECB has raised its bond-buying program by 600 billion Euros to improve growth. DXY hits- 2-1/2 month low and any break below 96.40 (200-W MA) confirms further weakness.
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The number of people filed for unemployment benefits rose to 1.87 million last week, slightly worse than the forecast of 1.80 million. Markets eye US NFP data for further direction.
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US Dollar Index – Bearish (positive for Gold)
S&P500- Bullish (negative for gold)
US Bond yield- strong (negative for gold)
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Technicals:
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The yellow metal has declined more than $10 from high $1721.75. Any violation below $1690 will drag the yellow metal down till $1670/$1660 likely.
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The immediate resistance is around $1723 (200-H MA), any indicative break beyond targets $1745/$1755/1765. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.
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It is good to sell on rallies around $1715-16 SL around $1726 for the TP at $1660.
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Gold showed minor recovery till $1721.85 on a weak US dollar. But strength in the global stock market is putting pressure at higher levels. The ECB has raised its bond-buying program by 600 billion Euros to improve growth. DXY hits- 2-1/2 month low and any break below 96.40 (200-W MA) confirms further weakness.
.
The number of people filed for unemployment benefits rose to 1.87 million last week, slightly worse than the forecast of 1.80 million. Markets eye US NFP data for further direction.
.
US Dollar Index – Bearish (positive for Gold)
S&P500- Bullish (negative for gold)
US Bond yield- strong (negative for gold)
.
Technicals:
.
The yellow metal has declined more than $10 from high $1721.75. Any violation below $1690 will drag the yellow metal down till $1670/$1660 likely.
.
The immediate resistance is around $1723 (200-H MA), any indicative break beyond targets $1745/$1755/1765. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.
.
It is good to sell on rallies around $1715-16 SL around $1726 for the TP at $1660.