Gold Forecast: Gold Price falls on second consecutive on Tuesday below $1200 mark after positive developments over BREXIT plans. UK and EU both agreed on draft which lays its exit from EU. This news brings lack of attention towards Gold as a safe haven and some profit booking below $1200 psychological level.
In a day Gold slips to low of $1,196.60 but also crossed into positive territory to touch a high of $1,205.50.
Major factors which are weighing on Gold prices are recent developments of Fed over its Rate increase plan. The consumer-price index number will be released Wednesday strong gain in that number could bring in more selling in the metals. Below Chart shows price decline of Gold.
1. Italian Govt Budget plan
2. 0700 Germany GDP flash Q3
3. Oil prices plummet on fears of weak global demand
4. 1000 Eurozone GDP flash Q3
5. 1000 Eurozone Employment flash Q3
6. 1000 Eurozone Industrial production Sep
7. 1330 U.S. Consumer prices Oct
The dollar index continues to react favorably to the US rate rise with a move up to 95.08 and has done a good job in negating the weakness seen over the past six weeks or so.
With the dollar stronger, the other major currencies we follow are weaker; especially the euro (1.1625) while Italy once again rocks the fiscal boat, sterling (1.3075), the Australian dollar (0.7215) and the yen has dropped through its 113.13-113.16 double bottom and was recently quoted at 113.38
As after looking on Daily chart of Gold one can easily find gold took support around the trend line which comes around $1198 – $1196 and respect of this support can bring some bounce in Gold price till $1210-$1211. The consecutive close below 1198 can brings fresh downside in prices.
As other indicators also taking support at recent lows. Gradual fall below this can brings fresh downside.
BUY ABOVE $1205 TGT $1211 -$1218 SL $1198
SELL BELOW $1198 TGT $1192-$1185 SL $1205