19 August 2016

MARKET OUTLOOK OF GOLD FOR 19 AUG 2016

           
R2
R1
S1
S2
TREND
GOLD
31600
31500
31100
30900
SIDEWAYS
Gold:  Gold rose on Thursday buoyed by a weaker dollar after minutes from the U.S. Federal Reserve's July meeting showed policymakers were divided over whether to raise interest rates soon. Meanwhile US data reports showed the number of Americans filing for unemployment benefits fell more than expected last week while manufacturing activity in the U.S. Mid-Atlantic region saw a mild improvement this month. This limited upside in bullion prices. However, prices were weak on Friday morning in Asian trade after New York Fed President William Dudley said strong recent U.S. job growth and a long-awaited return of middle-wage employment are two positive signs for the labor market, appearing to reinforce his more confident message on a possible interest rate hike. In other news,
European Central Bank rate setters agreed not to discuss any policy change at their July meeting and to keep market hopes for more stimulus in check, despite rising risks linked to Britain's vote to leave the European Union, minutes showed on Thursday.
Outlook:  Gold and silver could remain range bound to weak on Friday as hawkish comments from U.S. Federal Reserve officials renewed bets on a U.S. rate hike this year. The Dollar Index was trading with gains this Friday morning in Asian trade. This also could limit upside. Lack of any major data tonight could keep bullion prices tracking the Dollar intraday

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