Gold
Gold price crashed further as dollar index advances. Gold price crashed from 1309$ to 1289$ within a single trading session. First time after 2 weeks traders bid against buying and major selling came due to seller’s selling. Dollar index also contributed its part but main driver of prices were traders bidding against buying. Dow Jones Index also recovered from lows. Despite weaker GDP numbers from US we saw a tremendous rise in dollar and DJIA. This put pressure in entire precious metals pack. Silver also lost nearly 2% and broke below 15$ while giving up all its gains.
Now gold is hovering around its major base of 1288$. These are spot gold levels so do not confuse it with futures. If traders break and sustain below 1288$. Then expect good pressure in xauusd till 1280$- 1272$.
Resistance in gold chart stands at 1296$. If market break and sustain above 1296$. Then expect good rise in xauusd till 1302$- 1309$ today.
Conclusion: Comex Gold price forecast is weak for now. Major buying should be avoided for now as market has entered in bear phase. However today’s closing would be a trend setter. If somehow gold able to close above 1302$ then we may see some buying in next week. If gold price close below 1288$ then we may see further selling in xauusd upto 1270$- 1250$ and even more pain in precious metals not ruled out. So keep an eye on today’s closing if you are buying or selling for long term.
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