Gold finding 1200$ tough

Gold

Spot price of gold finding 1200$ tough to cross. Yesterday it tested above 1201$ and fall back from higher levels. Currently spot trading at 1191$ and Comex December futures trading at 1197$. Main weakness came in xau/usd after Fed meeting minutes released.

Fed meeting concluded that majority of FOMC members are in favor to hike another rate in September. Another hike in interest rate would indicate strong US economy which is putting pressure in precious metals prices since Fed report came out last night.

  • Dollar Index is trading positive since last night which is weighing in gold.
  • Dollar has recovered from 94.50 to 95 since last night.
  • Currently USD trading at highest point of the day at 95.07.
  • According to Kitco Gold Index majority of selling today is due to strong USD.
  • Resistance in USD index stands at 95.30, Above this level expect more buying in USD index.

Spot gold chart suggests a good resistance at 1202$, If market break and sustain above our resistance. Then expect good buying in xau/usd till 1209$- 1217$.

Spot gold chart has a good support at 1184$, If traders break and sustain below our support. Then expect pressure in yellow metal till 1178$- 1170$.

Silver

Spot price of silver tested 14.87$ last night before falling it till 14.60$. Currently its trading at lowest point of the day at 14.61$. Comex Silver September futures trading even lower at 14.59$. A good support in spot silver price stands at 14.48$, If market break and sustain below 14.48$. Then expect further selling in this major commodity till 14.30$- 14.05$.

Resistance in silver price stands at 14.92$, Once traders break and sustain above this hurdle. Then expect good recovery in xag/usd till 15.12$- 15.33$.

Crude oil

Nymex crude oil cruising higher since Monday. It has taken a good lead this week and breaking all resistance on its way. Currently trading at 67.80$. A good resistance on oil prices stands at 68.50$. If traders break and sustains above 68.50$. Then expect good recovery in this energy commodities leader till 69.20$- 70$.

A good support in Nymex crude oil stands at 66.80$, If traders breaks and sustain below this level. Then expect good pressure in this major commodity till 66$- 65.20$.

Euro

Euro trading on lower levels today as expected after a recovery in dollar index. Currently eur/usd trading at 1.1550. Currently support in this forex pair stands at 1.1490, If market break and sustain below this level. Then expect pressure till 1.1450- 1.1405.

euro chart

Resistance in euro chart stands at 1.1610, If traders break and sustain above our resistance. Then expect good recovery till 1.1670- 1.1730.

Dow Jones

DJIA Index trading at 25700 after making highs of 25839 last night. Main selling in DJIA index due to profit booking since last night which triggered a sell on chart. A good base on dow jones chart stands at 25580, If market break and sustain below this level. Then expect DJIA index to test till 25500- 25330.

Resistance on dow jones chart stands at 25850, If traders break and sustain above 25850 then expect US stock market to test till 25980- 26100.

Nifty

Despite weakness in world’s stock market, Indian stock market opened higher and currently spot nifty trading at 11585. A good resistance in nifty price stands at 11640, If market break and sustain above our resistance. Then expect good rise from there till 11690- 11720.

A good support in nifty price stands at 11530, If traders break and sustain below this level. Then expect good profit booking in market till 11470- 11400.

Conclusion

Comex Gold, Silver trend is flat to weak for now. It has broken intraday support so wont recommend any fresh buying for now. Crude oil is in positive zone, buy in dips would be good idea. Euro, Dow Jones and nifty are flat to weak.

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