Gold fired after slow growth forecast from BOC

Gold analysis

Gold price fired from its lows yesterday after Bank of Canada forecast slow growth in 2019. We taken advantage of this rise as our buy gold signal initiated at 1271$ and we booked profit at 1278$. Bank of Canada’s statement came after Fed already took its dovish stand from January this year.  We may see more central banks follow this suit as world growth comes in pressure. Interestingly Dow Jones Index was more or less unaffected from this news as it was trading above 26600 even after that statements.

Today we have US unemployment claims and monthly durable goods numbers. This would give an idea about US economy. While all central banks are trying to give a peak of world economy with dovish stance. US data proving them wrong all the time and giving enough reasons to hold stock market.

Tomorrow we will have crystal clear picture of US economy as US will release GDP numbers tomorrow. Finally we will have GDP numbers in hand to determine how US economy is faring compare to other world economies which are under pressure.

For now gold price trading at 1276$. Good support in Intraday precious metal stands at 1265$. If traders break and sustain below 1265$. Then expect good pressure in xauusd till 1258$- 1251$.

Resistance in Intraday gold chart stands at 1282$. If market break and sustain above 1282$. Then expect good rise in comex xauusd till 1290$- 1299$.

Conclusion: Nowdays markets are running on data. Usually we dont see any major range and a small range bound market for 2-3 days in a week. Then some data comes and market fires or drop dramatically. So trade wisely and keep strict stop loss in every trade. Gold trend for today is positive till xauusd holding above 1265$. Avoid sell positions and look to buy in dips.

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