Weekly Outlook on Gold - 9 Jun 2023
Last Updated: 9th June 2023 - 05:12 pm
Gold traded sideways after a 1% climb in the previous session, although gold headed for second straight weekly gains on bets that the U.S. Federal Reserve may pause rate hikes in its next week meeting. According to the Fed rate monitor tool, there was a 73.7% chance that the central bank will stand down from the rate hike next week. Market participants are keeping an eye on the next inflation reading due Tuesday. The CPI reading may ultimately determine the direction of gold whether it sets a new record high or continues to correct lower.
Gold traded rangebound ahead of Fed meeting
Technically, COMEX Gold prices have been hovering above 100-day Simple Moving Averages and could be poised for highs of $1990 and beyond even higher if it breaks the $2000 mark. However, the mixed fundamentals may keep some pressure on prices along with the volatility. A momentum indicator, Stochastic & CCI, witnessed a positive bias that supported the prices further. On the daily chart, the price has formed a Bullish Engulfing Candlestick pattern on Thursday's session that suggests bullish strength in the COMEX gold prices for the near term. On the downside, $1948 is indicating further support, while on the upside; there is a resistance at $ 2000 levels.
MCX Gold has been trading in a range since the last one week and is also near the support of 50-day Exponential Moving Averages. The short term trend in Gold is likely to remain sideways to bullish and breakout above 60300 would invite more buying strength towards 60800/61300 levels. Traders are advised to focus on U.S. inflation data and Fed meeting outcome as both the events are most important for the market direction.
Important Key Levels:
MCX GOLD (Rs.) |
COMEX GOLD ($) |
|
Support 1 |
59200 |
1948 |
Support 2 |
58500 |
1930 |
Resistance 1 |
60300 |
2000 |
Resistance 2 |
60800 |
2027 |
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