Spot gold price tried to break our major hurdle of 1209$ last week but DJIA index broke all records and closed at lifetime high. Investors found another way to shift their money. Last week we had good gains in gold as it moved past ahead of 1209$. But xauusd gains could not hold and it crashed back. We clocked more than 14$ gains last week in our signals despite higher volatility. We delivered more than $1400 profit to our clients. Gold highest point was 1211$ and lowest point was 1191$. Gold finally closed at 1199$ below 1200$.
- Last week gold gains came due to weaker dollar index.
- Dollar Index crashed from highs, Igniting hopes for some major buying in precious metals.
- DJIA Index charged up and closed on lifetime high and xauusd lost all gains.
- This week we have FOMC meet.
- Fed will determine interest rate and we are certain Fed will increase interest rate.
- Market may have already discounted 0.25% interest rate hike but if Fed surprise with 0.50% then it would be difficult to handle by gold traders.
- We have US quarterly GDP numbers which would be very important. Number would determine how strong US economy is and how many more interest rates we may see this year.
- This rate hike should be final as far as market is concerned. If Fed decides to rate hike next year or sound like they are going to increase rate in December too. Then we may face more drop in precious metals.
Technical chart has a good resistance at 1226$. This is trend reversal level which need to break if gold buyers wants to take price further. Once traders break and close above our resistance. Then expect good buying in xauusd till 1261$- 1292$.
Technical gold chart has a good support at 1165$-1160$. This major base gold last month. Xauusd bounced right after making this major base. If market break and close below this level. Then expect more pressure in this yellow metal till 1130$- 1100$.
Spot silver price finally broke 14.30$ and tested 14.40$ but came under pressure after gold extreme selling from highs. Xagusd finally closed at 14.23$ giving better closing than xauusd. A good resistance in silver price stands at 14.55$. This major hurdle is a trend reversal level. Once traders break and close above this resistance. Then expect good rise in this precious metal till 14.99$- 15.40$.
A good support in silver price chart stands at 13.90$. This support is major base to hold silver price in positive zone. Once market break and close below this level. Then expect more pressure in xagusd price till 13.50$- 13$.
Last week I gave two signals in our live chat room and our visitors fetched more than 140 pips in free signals. You may also join chat room for free. Click here to join. Crude oil broke 70$ and tested above 71$. It even closed above 70$ sending all sellers out. Above 70$ closing is pretty solid signal for next week. A good resistance in crude oil chart stands at 73.20$. If market break and close above our resistance. Then expect good rise in oil prices till 74.90$- 77$.
A good support in crude oil price stands at 68$. If market break and close below this level. Then expect good pressure in crude oil prices till 66$- 64$.
We have major data this week. Lets see what major events we have this week.
- Monday: ECB President Mario Draghi speech
- Tuesday: US CB consumer confidence
- Wednesday: FOMC decision on interest rates.
- Thursday: US monthly durable goods orders, US quarterly GDP, ECB president speech
- Friday: Fed chairman speech, UK quarterly GDP numbers
Comex Gold, Silver has entered in weak zone last friday when they crashed. But we have major events this week so i would advice all traders to stay cautious. Crude oil trend is positive.