Last week gold maintained above $ 1900 levels on Monday and spiked unto as highs $ 1916 levels on Tuesday. It gave up its gain and fell back to $ 1892 levels , Wednesday it popped up back to $ 1910 and dropped in a massive sell of to $ 1865 , on Friday it made a new weekly low of $ 1856 levels and baulked back to close the week at $ 1890 . Follow through selling were expected in gold after it failed to maintain above $ 1900, but after Fridays US employment report U.S dollar fell which in turn might have supported gold from a further sell off.

This week, there is no major Economic data out from U.S , Except CPI month on Month on Thursday 10th of June. CPI which indicated Change in price of Goods and services purchased by consumers of U.S. IF the economy doesn’t improve U.S dollar printing could pick up on pace and put pressure on U.S dollar index to fall back. Fall in U.S dollar could help gold to pick up momentum back above $ 1900 levels. Lack of no major fundamental data release could also help gold to make some volatile moves this week.

weekly and short term charts. Weekly gold chart picture suggest after 4 weeks of gains and failure to hold above $ 1900 could prompt gold to test its support at $ 1835 levels as it has formed a Hammer kind of close on higher levels of chart. Weekly resistance is at $ 1914 and nearby support for this week is seen at $ 1869. Meanwhile short term charts based on 30 minutes indicates some support at $ 1876  levels where gold could bounce off from there to retest its $ 1914 levels again.

Data and Events for U.S this week

• S CPI Month on Month on 10th June
• Core CPI M/M on Thursday.

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* Chart Source Netdania

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