Instrument: Gold
Bullish Preference:
Buy position is envisaged if price trades above 1932.7 with take profit at 1935.16
Bearish Preference:
Sell position is envisaged if price trades below 1928.33 with take profit at 1925.71
Fundamentals:
USD: 3:00pm Factory Orders m/mt
Comment:
Gold price extends its downward trend as the US Dollar remains resilient due to bearish market sentiment and steady employment growth in the US. The yellow metal faces pressure as the Federal Reserve (Fed) will likely keep interest rates higher for a longer period. The appeal for the US Dollar improves significantly as the US economy is expected to avoid a recession due to easing inflation and a stable job market.
US wage growth slowed in August as employees appear to be sticking to their current jobs due to declining confidence in the job market. After last week’s data pointed to stable job growth, slower wage growth, and broadly steady factory activity investors shifted their focus to the ISM Services PMI for August, which will be released on Wednesday. The PMI is expected to be broadly steady at 52.6 as demand for services remains resilient.
Analysis: SCRUM Team