GOLD LEVELS FOR 26 JULY 2016

Technical View:  

MCX Gold prices have been trading above its horizontal trend line support on hourly basis. On the other hand, prices have been trading above its 21 HEMA which indicates positive confirmation to the prices. Furthermore, COMEX Gold prices have witnessed Bullish Piercing candle stick pattern on daily basis. Moreover, Momentum Indicator RSI is trading above 50 levels on hourly time frame. For now we expect prices should move higher towards 31300 levels in the coming trading sessions.

	S2	S1	R1		R2	TREND
SILVER	31300	31000	30900		30700	SIDEWAYS

With a correction of more than 2 weeks, gold prices are close to hitting the technical support zone, however the key to any recovery will be the monetary policies meets of the US Fed and

the Bank of Japan. On the back of a strong labor market and manufacturing data, the streets have started to talk about a potential rate hike in December this year, which is fuelling the dollar and sending the gold prices lower. However, the Fed has hinted in its last statements that it will not hurry on the further tightening and it does not want the dollar to get stronger either. Therefore it will be interesting to note the language of the Fed on Wednesday.