16 August 2016

MARKET OUTLOOK OF GOLD FOR 16-17 AUG 2016

Gold:  Gold prices are expected to broadly trade sideways ahead of the FOMC July meeting minutes which are due to be released tomorrow. The strong employment report for the month of June supported the case for rate hike in September / December, therefore it will be crucial to wait and see what Fed has in the offerings. The continued strength in the global equities might check the gains, however fresh stimulus expectations from China are likely to keep the prices supported. Gold rose on Monday as the dollar edged lower as expectations dwindled that the U.S. Federal Reserve will raise interest rate this year. Data on Friday showed U.S. retail sales were unexpectedly flat in July, signaling a moderation in consumer spending. For the day we recommend a buying from lower levels.
Outlook: We expect gold prices to trade sideways on the back of short covering after drop in prices.
           
R2
R1
S1
S2
TREND
GOLD
31700
31570
31300
31000
SIDEWAYS

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