Last week gold started off from $ 1881 levels and remained between $ 1872 and $ 1885 , Tuesday it broke its resistance at $ 1885 and traded near $ 1900 levels. Gold gathered upside momentum on Wednesday and took off its psychological resistance at $ 1900 to quickly mark its weekly high of $ 1912. On Thursday and Friday it remained highly volatile to trade between $ 1905 and $ 1882, finally settled the week just above $ 1900 levels. U.S Treasury yield and Inflationary worries could be the key factors which triggered gold to mark multi months highs last week.
This week, Monday being a market holiday gold remained near to its $ 1905 levels. On Asian hours of trading today, gold marked as high as $ 1916.50 , the levels which we saw on January 2021. News related to US-Iran Pact is expected this week as IAEA inspection is progressing in Iran. U.S dollar which is near to its 5 months low could get a boost if there is positive fundamental news out from Iran. Later today ISM manufacturing number will be out of U.S . Fridays Non Farm employment change and Unemployment change data could throw more light on the current market and economic scenario of the U.S.
Technically, gold is impressive in chart pictures and each time it dips we could see some fresh buying interest. After posting a high of $ 1916.50 earlier today, gold is seen to be taking a test run to find support at $ 1900/102 levels. 50 day moving average for gold is seen at $1890 levels and combined with a psychological support at $ 1900 and 50 day Moving average at $ 1890, any fall in price could find support and gradually it could pick up price gains in this week to mark around $ 1927 the upper Bollinger band target.
Data and Events for U.S this week
- S ISM Manufacturing numbers later today.
- Non Farm Employment Change on Friday
- Unemployment Rate on Friday 5th of June.
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* Chart Source Netdania