Gold price forecast
Comex Gold price blasted after fed hiked interest rate by 25 bps and now interest rate stands from 1.50% to 1.75% . US dollar index crashed after rate hike and investors seems to push gold prices in favor of dollar . Even Dow Jones lost almost 1200 – 1300 points post Fomc meeting and closed near 23600 signaling weaker week ahead . Additionally President Trump signed executive order to impose 50-60 billion dollar tariff which could lead to a trade war and equities could not digest it and fell badly , making gold even more attractive .
Dollar basket weakened on these events on fear that China may retaliate and american companies may suffer as China is very attractive market specially for american agriculture companies .
A good support on weekly gold chart stands at 1324$ , If traders take this base out and manage to close below our support . Then expect more pressure in gold price upto 1300$ – 1270$ .
A good resistance on weekly gold chart stands at 1366$ , If traders break this major hurdle and manage to close above our resistance . Then expect good firepower in gold price upto 1392$ – 1425$ this week .
Weekly Gold price forecast conclusion : We already mentioned in our medium term gold forecast that we expect 1400$ very soon . You may read our detailed medium term gold forecast here . Comex gold trend is positive for upcoming week but some profit booking might lead a small correction so stay cautious when buying in bulk .
Dow Jones forecast
Dow Jones crashed from 25800 to 23500 loosing almost 1300 points from its weak peak . A good base on this major world index stands at 23200 , if traders tank this base out and manage to close below our support . Then expect good pressure in US30 upto 22800 – 22500 this week .
A good hurdle on weekly Wall Street stands at 24120 , If traders break this major hurdle and manage to close above our resistance . Then expect good firepower in Wall street upto 24440 – 24800 .
Dow Jones forecast conclusion : Wall Street trend is weak for this week . Avoid major buy till it does not cross our resistance .
More will update in daily analysis update .