9 August 2016

MARKET OUTLOOK OF GOLD FOR 09-10 AUG 2016

Gold:  Gold steadied after falling to a one-week low on Monday as downward momentum from stronger-than-expected U.S. jobs figures late last week lost steam, with concerns over negative global economic sentiment lending support. The payrolls data on Friday reignited speculation that the Federal Reserve could press ahead with interest rate hikes later this year. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced. Speculators added net longs in COMEX gold futures for the first time in a month in the week to Aug. 2, though they remained below last month's highest level in more than two years, while they cut it in silver for the first time in two months.
Outlook: We expect gold prices to trade negative on the back of US non-farm payroll data released on Friday.
           
R2
R1
S1
S2
TREND
GOLD
31400
31250
31000
30900
SIDEWAYS

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