WEEKLY CHART FOR GOLD:
WEEKLY REVIEW:
Gold was headed for the seventh weekly
drop in eight weeks as investors positioned for a looming U.S. rate hike. A
robust dollar was limiting interest in gold. The greenback rebounded from a
one-month low on Thursday, boosted by rate hike expectations. Outlook Weakness
in oil is hurting bullion as a slide in oil could trigger fears of deflation, a
bearish factor for gold, which is often used as a hedge against oil-led
inflation. Short positions in COMEX gold futures and options are at record
highs, while assets in SPDR Gold Trust, the top bullion exchange traded fund,
are at their lowest since Sept. 2008.As the FOMC policy meet approaches the
investors are turning more cautious on gold. For the day we recommend a Sell in
gold.
The Outlook for Gold will remain negative until prices stay below 25600
levels intraday. A decisive break down below 25240 will push prices lower
towards 25144/25080/25000 areas. The counter needs to trade above 25500 mark to
rebound towards 25800/26000 levels.
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