Instrument: GOLD
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 1833.63 with take profit at 1837.37
Bearish Preference:
Sell position is envisaged if price trades below 1819.93 with take profit at 1817.72
Fundamentals:
Core Retail Sales m/m 1:30 PM
Retail Sales m/m 1:30 PMFed Chair Powell Speaks 7:00 PM
Comment:
Gold prices are starting the week on positive footing but challenges remain. Fundamentally, the arrival of positive real interest rates in the US portend weakness in gold prices. A strong US Dollar coupled with an aggressive Federal Reserve rate hike cycle stands to exacerbate this trend. Technically, gold prices have now lost the uptrend from the August 2021, December 2021, and January 2022 swing lows, suggesting an important inflection point has been breached to the downside. Accordingly, there’s little reason to believe that the movement at this start of this week suggests that the downtrend in gold prices is finished in the short-term.
Analysis: SCRUM Team