Gold started off from $ 1840 levels last week and immediately spiked to $ 1869 , further it marked as high $ 1890 on Wednesday, then it retreated from its high back to $ 1872 .Towards the close of the week gold climbed back to $ 1889 and finally settled the week at $ 1882 levels. Erratic price action in Cryptocurrencies last week could have been the catalyst for traditional safe haven asset like gold to mark gains.
This week, there is a series of Speeches out from Federal Open Market Committee Members, traders might keep close attention to pick details of Feds action plans ahead. FX market is likely to post volatile moves. U.S dollar index is trading near to its multi month low.USD could climb back which might limit the gold gains this week. This Thursday Preliminary GDP quarter to quarter will be out from U.S which is an annualized indication of change in goods and services produced in U.S , if the numbers are greater than expected this could help U.S dollar to recoup its recent lost ground whereas gold is trading near to its psychological level of $ 1900 and Multi Month high.
Further course of move might be based on the fundamental news coming out this week.
Technically, Gold on charts indicates trading near to its resistance at $ 1900 levels and two occasions on last week gold could not pierce above $ 1890 levels. A firm move above $ 1900 could trigger all the stop orders above $ 1900 and post a sudden gain. But it’s more likely to retrace before it starts climbing again. The Fibonacci retracement indicates $ 1841 as its first major support if it gives up its gains from here. Currently gold is trading at $ 1882 after an attempt to move higher in early asian hours which got rejected from $ 1887 levels. Based on 30minutes short term charts, gold indicates resistance at $ 1890 and support at $ 1869 levels.
Data and Events for U.S this week
- Preliminary GDP Quarter to Quarter of U.S on Thursday 27th May.
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* Chart Source Netdania