Gold was on a free fall last-week, it spiked to as high as $ 1816 levels to start the week and remained on downwards bias as we anticipated in our earlier report. On last Friday, towards the close of the market it marked as low as $ 1717 levels. U.S Dollar Index posted an impressive gains, also rising U.S bond yield resulted in a whitewater fall in Gold prices.
This week, Asian Manufacturing activities shows positive numbers offers some support for Asian equity markets for recovery and rollout of vaccination drives helps to lay path for a recovery in economic activities. Later today ISM numbers of U.S will be released, followed by Wednesdays Private Employment data. On Friday U.S Non Farm payroll is forecasted to be +130 k.Open interest of positions in Gold futures is seeing contraction which hints about money moving out of Gold. An Impressive recovery in gold price action could appeal traders to go long again.
Technically, last two weeks we have seen the short term moving average has crossed own to the long term moving average ie: 50 & 100 day moving average has crossed down to 200 day moving average. Which adds pressure to gold price as and when it tries recovers it gets rejected. After a massive fall in price in a week of nearly $100 loss last week an attempt to recovery is seen , currently trading at $ 1755 gold has to cross tough resistance at $ 1757 as we write the report and next major Fibonacci retracement resistance at $ 1773 levels. Meanwhile $ 1740 could offer a bleak support and Bears could target again to take out the last weeks low of $ 1717.
Data and Events for U.S this week
- S ISM Later today.
- ADP Non Farm Employment Change on 3rd March
- Non Farm Payroll on Friday 5th
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