Instrument: GOLD
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 1776.30 with take profit at 1781.83
Bearish Preference:
Sell position is envisaged if price trades below 1769.10 with take profit at 1763.70
Fundamentals:
1:30PM USD Unemployment Claims
5:00PM USD FOMC Member Mester Speaks
Comment:
Gold prices edged higher on Thursday, with most other precious metals marking small gains after a rally in the U.S. dollar appeared to have paused. Gains in precious metal prices came as the U.S. dollar cooled after a two-day rally. The dollar index surged nearly 1% in the past two days after hawkish comments from two Federal Reserve members drove up expectations of sharper interest rate hikes this year. San Francisco Fed President Mary Daly and Chicago Fed President Charles Evans both signaled that inflation is yet to cool in the country, and the Fed was likely to raise rates even further to combat rising prices. While gold appears to have gained some ground in the past two weeks, the outlook for the yellow metal is dulled by the prospect of rising interest rates this year. Most other precious metals are also expected to see muted price action as the Federal Reserve continues to tighten monetary policy.
Analysis: SCRUM Team