Gold fired back from support


Comex Gold price fired back from support of 1398$ yesterday. Dollar Index finally started showing cracks which led a good buying in xauusd and gold clocked nearly 20-22$ gains in a trading session. Tuesday dollar index was testing pretty good highs which kept gold in check and xauusd tested 1402$. Wednesday again dow jones & dollar showed strength which resulted gold to test 1400$.

Finally in US session dollar index started cracks and this resulted in gold recovery with massive gains within hours. Gold bounced back pretty hard from 1400$ to test 1428$ within hours. Its clear from gold moves that market is still not convince that US economy is best in the world as claimed by President Trump.

We are seeing major cracks in US data, specially in jobs numbers which Trump is ignoring all together. Yesterday Dow Jones tested 27150 which gave a smile to my subscribers. We had a selling from 27300 for target of 27180. We gained nearly $1200 profit per lot in Dow Jones sell signal.

Dow Jones is still over heated and I believe it requires at least 20% correction from these levels. I would see good valuation in DJIA index around 21000-22000. 20% crack in dow jones may result good gains in gold which already started discounting weakness in economies.

Current trade war with China also causing huge hiccups in american businesses. American citizen paying huge indirect taxes as custom duty levied by president Trump. Soon we will see major heat in american inflation numbers.

For now gold is trading around 1422$. Good support in this precious metal stands at 1414$. If market break and sustain below 1414$. Then expect good pressure in xauusd till 1406$- 1400$.

Resistance in comex gold chart stands at 1431$. If traders break and sustain above 1431$. Then expect good rise in this precious metal till 1438$- 1446$.

Conclusion: Currently gold trend is positive so avoid major selling. But I wont recommend any buying here. Wait for dips.

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