MARKET OUTLOOK OF GOLD FOR 01 AUGUST 2016

	R2	R1	S1		S2	TREND
GOLD	31600	31500	31400		31250	SIDEWAYS

Gold:  Gold rose to its highest level in nearly three weeks on Friday after much slower-than-expected U.S. economic growth weighed on the dollar, and was on track for a second monthly gain in a row. The U.S. Commerce Department reported that GDP grew at an annual rate of 1.2 percent in the second quarter, far less than economists' estimates of 2.6 percent growth. Uncertainty over the path of interest rates has held gold in check since it rallied to more than two-year highs in the wake of Britain's shock vote last month to leave the European Union. The U.S. currency's decline was also due to the strength of the yen, after the Bank of Japan under whelmed investors by expanding monetary stimulus through only a modest increase in purchases of exchange traded funds.

Outlook: We expect gold prices to trade negative on the back of the chance of U.S. monetary policy being tightened before the end of the year.