Gold traded both sides last night in a short range of $1218.70 – $1225.20, due to narrow movement in US Dollars. Gold fell to its $1218.70 low during Asian hours. The dollar was stronger against a basket of currency from the heavy downfall in the pound and euro and Japan with no Brexit breakthrough and lingering Italian budget concerns.
During European time, however, gold rebounded to its $1235 high hitting two months. The greenback was pressured by recoveries in the pound (GBP) euro (EUR) And Japanese Yen as UK PM May proposed to extend 21-month transition period following Brexit at the end of March. Global stocks were mostly deep red. Weaker oil prices (WTI from $69.35 – $68.61.
At 11:20 PM (SGT), BANK OF ENGLAND Governor Carney is a key event to watch today on Tuesday
This week Key Events to watch are European Main Refinancing rate, ECB conference And USD Durable Goods Report on Thursday and On Friday, Advance GDP Report of US and European Bank President to Speak.
Gold rose in response and tripped some buys stops over the 100-day moving average at $1226. Some dovish comments from the Fed’s Bullard (Fed’s policy about right – no more hikes needed) and Quarles (uncertainty calls for gradual rate hikes) were gold supportive.
White House Economic Advisor Kudlow has spoked harsh comments toward China (they are illegal traders, they have stolen our IP, they have not responded positively to any of our asks), triggering fresh fears that a protracted standoff will impact global growth. US stocks sank further (S&P -54 points to 2755), and the 10-year yield slipped to 3.164%. The dollar, however, turned and rallied (trade tensions have been dollar positive), with the DX running to 95.98. Gold retreated but was supported at the 100-day moving average at $1226.
In Morning, Hong Kong Stocks Falls 3.08% losing 800 points Nikkie down 2.67% down 600 points, while the US 10-year yield ticked up to 3.181%. Gold was $1335 bid at 3 PM with a gain of $2.
Gold Was Up 1% trading at 1335$ at 11:00 Am Gmt and Silver was also up 1.05% Risen 16 cents to 14.72$
All markets will continue to focus on geopolitical events (especially Brexit developments), developments with the Trump Administration (especially on US-China trade, potential legal issues), oil prices, Q3 corporate earnings, and will turn to reports tomorrow on Japan’s CPI, China’s GDP, Retail Sales, Industrial Production and Jobless Rate, US Existing Home Sales, Baker –Hughes Rig Count, and the Commitment of Traders Report for near-term direction.
Key Support and Resistance Levels To Watch In Gold And Silver:
What To Expect Next From Gold And Silver:
After Looking at the Weekly Chart There is
->Rectangle Pattern Breakout In Weekly Charts
->Breakout Above 1230$
If there is breakout at Fibonacci Levels 38.2 Then Expect Gold (XAUUSD) Till 1258$
In the Daily Charts:
->Supports is at the trend line
->Ascending Triangle Formation
Breakout Above 14.85$ In daily chart can move silver 70-80 cents up till 15.40-15.50$