Last week gold maintained upside momentum and started off from $ 1830 to trade $ 1845 levels and started to fall back to as low as $ 1809 on Thursday. Towards the close of the week it climbed back higher to close near to its high at $ 1842 levels. Sharp fall in U.S Dollar index and volatile trade Treasury bond resulted in gold to gather upside momentum last week.
This week maintaining its last week’s upside track gold climbed to high of $ 1873 levels today. There are no major Economic news release this week except the Fed-eral Reserve FOMC Meeting Minutes, It’s a detailed record of the FOMC’s most re-cent meeting, providing in-depth insights into the economic and financial conditions of the market and which might have influenced the committee members to cast their their vote on where to set interest rate . U.S Treasury yields, seems to bounce back after last weeks Volatile move, limiting the U.S dollar decline. As we write the report gold is off from its high and trading below $ 1870 levels.
Technically, gold pierced above to its 200 day moving average and the 61.80 % Fibonacci retracement resistance of last 6 months. Gold bulls need to maintain the current levels on close basis multiple occasion to maintain upside momentum. Support levels are seen at $ 1858 followed by $ 1848 on hourly charts. After the recent surge in price gold could take a dip back to test on its support levels. Daily charts indicates a major support at $ 1800 levels.
Data and Events for U.S this week
- FOMC Meeting minutes on Wednesday 19th of May.
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* Chart Source Netdania